CNX-NIFTY--A TECHNICAL VIEW--22-2-2016

CNX-NIFTY

Closed at 7210.75 on 19-2-2016 (Open-7170.55/High-7226.85/Low-7145.95.)

Support:-7118.45/ 7048.25/7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:- 7226.85/7241.50/7295/7350.30/7422/7512.55/7539.50/ 7551.05/7563.55/7589.50/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It opened on a negative note and went down further and thereafter moved in a short range and in the last hour of trade it steadily moved up and closed near the high of the day. The  up move may continue further for few days provided it holds 7162.95 and then 7048.25 on the closing basis which may please be noted. Therefore long call can be tried but with utmost caution and care. Moving up it will face resistance at 7227/7241.50/7267/7295/ 7310/7360—7400 and possibly the on-going up move may exhaust at any of these points so be watchful and alert. . Since it is in down trend and the on-going up move is a bear rally only as of now so the above points could also be used as sell point also provided weakness is visible in the price movement.   

 Please note that it is a bear rally only and these rallies can end abruptly also, furthermore it is not very far from it very tough resistance points of 7241.50 and 7295 and it seems that it will not be that easy to cross these point specially 7295 mark, therefore it is suggested to handle long trade very carefully. I would once again caution safe trader not to take advantage of the in between up rallies in bear market as it can trap you unaware at higher levels. However aggressive intra-day trader can try long call if as mentioned below.  The long trade can safely be attempted only if it comes out of the bear territory mark of 7295 and sustain.

  

For 22-2-2016 long call can be tried if it maintains above 7227 or near but not below 7162.95 with a stop loss of below 7200 and 7120 respectively for a target of 7227/7241.50/7267/7295/7310-7360.Trying long call above 7227 would be relatively safe. Similarly these points can also be used as sell points provided price show weak movement during the day and with the proper stop losses or sell call can be tried if it maintains below 7114 with a stop loss of above 7170 for a target of 7037/6960. Sell call can also be tried if it does not cross 7227 mark or if it cross and fall below this level again and sustain then with a stop loss of above 7245.  Please note that sell call should surely be attempted in the range 7275—7295 with a stop loss of above 7325 because it seems that this rally may not last beyond 7295 for a long time. I once again repeat that since it is pullback rally therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. Still long call can be tried but with extreme caution as it is approaching very tough resistance area. But if price moves otherwise short call should also be tried and must be in the range of 7275-7295.  Please note that taking advantage of the pullback rally could be risky, so be alert and watchful in long trade.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.