CNX-NIFTY--A TECHNICAL VIEW--26-2-2016

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.