CNX-NIFTY--A TECHNICAL VIEW--23-2-2016

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.