CNX-NIFTY-A TECHNICAL VIEW-4-2-2016

CNX-NIFTY

Closed at 7361.80 on 3-2-2016(Open-7392.45/High-7419.40/Low-7350.30)

Support:- 7295/7241.50/7118.45/6868.85/6638.55.

Resistance:- 7402.80/7422/7539.50/ 7551.05/7563.55/7575.65/7589.50/7667/7678/7691.20/7714.15/7723.85/7840/7863/7938.45/7940/7946.35/7960/7979.30/7997/8055/ 8065/8091.20/8116.10/8244.

It opened with a down gap today and did not make any potential effort to gain some lost ground during the day which shows tremendous weakness in it. In fact in last 45 minutes of trade it went down sharply and closed near the low of the day. It broke all its short term moving averages decisively and also broken its recent bottom of 7424.65 on the line chart confirming that the pull back rally is over for sure. Therefore long trade is completely ruled out till it moves and sustains above 7539.50 again or show some visible strength at the lower levels. It is clearly a sell on the rise market as of now.

It is important to mention here that its threshold point for entering the bear market is at 7295 and it is very near to it. Please note that sustained break below this level could drag it down faster and to much lower levels . So this is the benchmark point for initiating both ways trade.

  

For 4-2-2016 can sell on the rise but below 7403 for the entire remaining week with a stop loss of above 7440 thereafter sell on the rise at appropriate points (with proper stop losses with the help of support and resistance points) but not above 7539.50 with an ultimate stop loss of above 7590.Since it is very near to its important point of 7295 as mentioned above, so one should be careful in the short trade around this level and should carry the trade if it breaks this mark with a stop loss of above 7330.  

Remark:-The long term trend is still down. It is clearly a sell on the rise market now; therefore buying should not be attempted for in between short up moves 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.