CNX-NIFTY--A TECHNICAL VIEW--29-2-2016

CNX-NIFTY

Closed at 7029.75 on 26-2-2016 (Open-7039.30/High-7052.90/Low-6985.10)

Support:- 7021/6960.65/ /6869/6825/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-7030/7118.85/7204.65/ 7241.50/ 7252.40/7295/7350.30/7422/7512.55/7539.50/ 7551.05/7563.55/7589.50/7600.45/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/

It opened with an up gap today but filled the gap during the day and after three days of fall it took a breather today and closed the day with a gain of 59.14 points. Please note that it could witness huge volatility and wild swings on 29-2-2016 because of The Union Budget-2016-17 but any rise has to be sold into at the appropriate points till it moves out of the bear market territory threshold point of 7295 and sustain.

Technically it is weak but it has made double bottom at 6960, so this would act as a good support level. The range for the week starting from 29-2-2016 is between 6960—7295 and breakout on the either side will decide the movement direction for the week, but looking at the overall technical setup it is more likely to give down side break in coming days. Therefore it is advised to structure your trade keeping the above range in mind. Please note that it is already in the bear market and short term trend is also down, therefore it is suggested to avoid long trade for now and follow sell on the rise strategy till it moves above 7295 and sustain. Going up it will face resistance at 7095—7120/7141/7190/7205/7241.50/7252.40/7295.  Moving down it will find support at 6960/6869./6825/6775/6722-6710/6685/6638.55/6510/6432.70/6357.10/6338.50. Please note that sustained break below 6338.50 can drag it down to unbelievable lower   levels.

For 29-2-2016 sell call can be tried on the rise or below 6960 with a stop loss of above 7030 for the entire week starting from 29-2-2016 for a target of 6869/6825/6775/6720/6685. The possible sell points on the rise could be at7095—7120/7141/7190/7205/7241.50/7252.40/7295.  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.