CNX-NIFTY
Closed at 6970.60 on 25-2-2016 (Open-7029.85/High-7034.20/Low-6961.40.)
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 on a positive note but
could not hold on and immediately slipped down below the previous day’s low and
also closed below it with a loss of 48.10 points. Technically it is already on a
weak footing, furthermore it is in the long term bear market and finally it has
ended its recent short up move two days back and started declining, so it seems
that the fresh down move has begun, therefore long trade is completely ruled
out till it moves above 7253 and then 7295 levels and sustains or shows some
visible strength at the lower levels. Please note that crossing 7295 mark is of
prime importance because it is the bear market territory threshold point and
only above this point it could expect some stability. Therefore it is clearly
sell on the rise market now, however in between short relief rally cannot be
ruled out but those rallies should be utilized for selling. 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. Please note that sustained break below 6338.50 can drag
it down to unbelievable lower levels.
For 26-2-2016 sell call can be tried
on the rise or below 6960 with a stop loss of above 7040 for a target of 6869/6825/6767/6720.
The possible sell points on the rise could be at 7100-7120/7150-7180/7210--7227/7241.50/7295.
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. It is suggested to adopt sell on the rise
strategy and long trade should be completely avoided for now.
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.
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Thank you for sharing your views.