CNX-NIFTY-A TECHNICAL VIEW--8-2-2016

CNX-NIFTY

Closed at 7489.10 on 5-2-2016(Open-7418.25/High-7503.15/Low-7406.65)

Support:-7489/7422//7350.30/7295/7241.50/7118.45/6868.85/6638.55.

Resistance:-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 builds on yesterday’s short up move and gave good rise today and closed with a gain of 85.10 points. It has higher bottom on the bar chart at 7350.30 therefore as long as it holds this level it could remain sideways with an upward bias for some time. Now it is within its short term moving average range which is between 7453—7497(it changes every day) for 8-2-2016 and it is just below the upper band of the range now, therefore long call can be attempted only if it consistently trade above the upper band of the moving average range i.e. 7497 level with an alert point at 7450 and exit point below 7406. But it is suggested and would be safe to try long call only if it moves and sustains above one of its most crucial benchmark point of 7539.50 which is valid for the entire year of 2016. Therefore it seems that short trade is still a good option till it moves above 7539.50 and sustain.

For 8-2-2016 short call can still be tried using the moving average range of 7453---7497 as selling range and then near but not above 7539.50 with a stop loss of above 7590 or can also sell below 7440 with a stop loss of above 7505. Please note that those with short call position should get alerted if it gives indication to close above 7500 then they should lighten their commitment.

Remark:-The long term trend is still down. It had a good rise today but it is suggested to try long call only if it moves and sustain above 7539.50.Short call can be tried as suggested above.

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.