CNX-NIFTY
Closed at 7233.30 on 22-2-2016 (Open-7208.85/High-7252.40/Low-7200.70.)
Support:-7226.85/7118.45/7208.85/ 7048.25/7021/6980.95/
6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.
Resistance:- 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 moved in a very short range today,
it crossed its first tough resistance point of 7241.50 intra-day but could
close above it. Please note that the range of 7241.50---7295 is very important
and tough range and if it fails to cross 7295 mark then the on-going rally may
be over or it may correct sharply from here. Since it is very close to this
range now therefore it is suggested to avoid long trade around this range and
should only be attempted if it crosses 7295 mark and sustain because this the
bear market territory threshold point. Please note that price wise it still
looking o.k. as long as it holds 7140 on the closing basis. So those who wish
to try long call can try if it maintains above 7227, but be alert below 7208
and exit trade below 7190.
For 23-2-2016 long call can be tried
if it maintains above 7227 with a stop loss of below 7190 for a target of
7241.50/7267/7295/7310-7360. 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 7140 with a stop
loss of above 7215 for a target of 7114/7037/6960. Sell call can also be tried
if it falls below 7227 and maintains for some time 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 as of now it seems that this on-going up move may not last beyond the
point of 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. The price movement is still o.k. but it has
entered into a highly important and tough zone, therefore it is suggested to
avoid long now and should only be attempted if it crosses 7295 level and
sustain. If it shows price weakness sell call can be tried.
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.
Thanks for the amount of work to provide an informative article. I will certainly store it as a major point of future reference. . share market tips
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