CNX-NIFTY--A TECHNICAL VIEW--24-2-2016

CNX-NIFTY

Closed at 7109.55 on 23-2-2016 (Open-7240.30/High-7241.70/Low-7090.70.)

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

Resistance:-7118.85/7208.85/7210.85/7226.85/ 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 behaved the way I perceived it (see my post for 23-2-2016). It opened flat to positive but it did not stay above 7241.50 and steadily moved down and closed the day with a huge loss of 125 points and near the low of the day. Since it could not sustain above 7241.50 ,so as expected it reacted  sharply and looking at today’s move it seems that possibly the on-going rally is over for good and fresh down move may begin, therefore long call should be completely avoided and sell on the rise strategy should be followed till it cross 7295 level and sustain . Moving down it will find support at 7067/7020/6869.85/6825/6685/6638.55/6432.70/6357.10/6338.50 points, where it could take a breather. Please note that sustained break below 6338.50 can drag it down to unbelievable lower   levels.

For 24-2-2016 sell call can be tried on the rise or below 7090 with a stop loss of above 7125 for a target of 7067/7020/6960.65/6869/6825/6767. The possible sell points on the rise could be at 7160-7180/7210/7227/7241.50/7295. The authentic stop loss for short trade on the rise would be above 7325; therefore it is suggested to use self defined stop losses for every sell point with the help of resistance level mentioned above to manage your trade better. Buying is ruled out for now.

 Remark:-It is in long term bear trend now. The on-going pullback rally seems to be over therefore long call should be completely avoided now and sell on the rise strategy should be followed.  

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.