CNX-NIFTY-A TECHNICAL VIEW--25-2-2016

CNX-NIFTY

Closed at 7018.70 on 24-2-2016 (Open-7075/High-7090.80/Low-7009.75.)

Support:-6960.65/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-7021/7118.85/7208.85/7210.85/7226.85/ 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 opened with down gap but filled the gap during the day and thereafter steadily moved down and ended the day with a loss of 90.84 points and closed near the low of day. Today’s move almost confirmed that the on-going up move is over for sure and a fresh down move has begun. Therefore buying is ruled out for now and sell on the rise strategy should be adopted till it moves above 7253 and then above 7295 and sustain. Please note that crossing 7295 mark is of prime importance because it is the bear market threshold point. Moving down it will find support at 6960/6869./6825/6685/6638.55/6432.70/6357.10/6338.50, where it could take a breather and give a short relief rally before resuming down move again. Please note that sustained break below 6338.50 can drag it down to unbelievable lower   levels.

It is important to mention here that Rail & Union Budget is approaching, so the market could witness huge volatility and wild swings but since the fresh down move seems to have begun and it is already in the bear market, therefore any up swing should be utilized for selling.  

For 25-2-2016 sell call can be tried on the rise or below 7009 with a stop loss of above 7050 for a target of 6960.65/6869/6825/6767. The possible sell points on the rise could be at 7100-7120/7150-7180/7210--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. Since 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.