CNX-BANK NIFTY--A TECHNICAL VIEW--25-2-2016

CNX--BANK NIFTY

Closed at 13794.05 on 24-2-2016(Open-13873.70/High-13974.50/Low-13760.25)

Support:- 13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 13810.60/13892.10/14120.90/14258/14331.20/14338.65/14344.20/14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It opened with a down gap but filled the gap during the day and thereafter steadily moved down and ended the day with a loss of 214.30 points and closed near the low of the day. It is showing gross weakness on the chart and it is clearly sell on the rise market now (see my post of 24-2-2016). Therefore buying should be completely avoided till it crosses 14470 level and sustain or shows some visible strength at the lower levels. Moving down it will find good support at 13760/13690/13520/13414/13303.60 where it could take a breather and may give a short relief rally before resuming down move again. Please note that sustained break below 13303.60 can drag it down to much lower levels.

It is important to mention here that Rail & Union Budget is approaching, so the market could witness huge volatility and wild swings but since the fresh down move seems to have begun and it is already in the bear market, therefore any up swing should be utilized for selling. 

For 25-2-2016 sell call can be tried on the rise or below 13760 with a stop loss of above 13820 for a target of 13670/1352013414/13303. If it remains below 13892 can sell with a stop loss of above 13950 for the remaining week. The possible sell points on the rise could be at 14050/14125-150/14240—14325/14450. The authentic stop loss for short trade on the rise would be above 14510; therefore 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 since 4-1-2016. Since the on-going pullback rally seems to be over therefore long call should be completely avoided now and sell on the rise strategy should be followed. 

 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.

TRADING CALLS FOR 24-2-2016

TRADING CALLS

1. ACC.

Sell below -1240, S/L-1246, Target-1208/1204/1199/1183.

2. ASHOK LEYLAND.

Sell below -88.85, S/L-89.75, Target-86.75/85.10/84.70/82.75.

                                    

3. ASIAN PAINTS.

Sell below -882, S/L-887, Target-866/859/846/826.

                                  

4. AUROBINDO PHARMA.

Sell below -647, S/L-654, Target-620/616/604/601/588.

5. AXIS BANK.

Sell below -383.25, S/L-3385.50, Target-379/373--366.

                                       Or

Sell near-395 but not above this, S/L-397, Target-390/383.25/379.

6. BHARAT FORGE.

Sell below-762, S/L-767, Target-748/740/730/720..

7. BAJAJ AUTO.

Sell below-2386, S/L-2397, Target-2336/2295.

8. BANK OF BARODA.

Sell below -132, S/L-133, Target-126.30/122/118.

               

9. BHARTI AIRTEL.

Sell below -318, S/L-322, Target-308/304/296.

10. HERO MOTOR CORP.

Sell below-2652, S/L-2662, Target-2602/2556.

11. HINDALCO.

Sell below -67.50, S/L-68.50, Target-66.30/64/61.60.

                                    

             

12. ICICI BANK.

Sell below-190.25, S/L-192.25, Target-188.85/185/175.

13. LUPIN.

Sell below-1764, S/L-1770, Target-1747/1715/1693.

14. MARUTU SUZUKI.

Sell below-3480, S/L-3490, Target-3461/3386/3360/3320.

15. MAHINDRA & MAHINDRA.

Sell below -1203, S/L-1210, Target-1185/1161.

16. MARICO.

Sell below -236, S/L-238, Target-228/225/219.

                                 

17. STATE BANK OF INDIA.

Sell below -158, S/L-159.50, Target-155/151.25.

18. TATA STEEL.

Sell below -252, S/L-254, Target-246/242/238.

19. STRIDE SHASHUN.

Sell below -935, S/L-946, Target-900/865.

20. SUN PHARMA.

Sell below -866, S/L-872, Target-857/828/818.

Note: Price stated here is of spot market.

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.

Contact me for strategic guidance to enter and exit the trade

CNX-NIFTY--A TECHNICAL VIEW--24-2-2016

CNX-NIFTY

Closed at 7109.55 on 23-2-2016 (Open-7240.30/High-7241.70/Low-7090.70.)

Support:-7048.25/7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:-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 behaved the way I perceived it (see my post for 23-2-2016). It opened flat to positive but it did not stay above 7241.50 and steadily moved down and closed the day with a huge loss of 125 points and near the low of the day. Since it could not sustain above 7241.50 ,so as expected it reacted  sharply and looking at today’s move it seems that possibly the on-going rally is over for good and fresh down move may begin, therefore long call should be completely avoided and sell on the rise strategy should be followed till it cross 7295 level and sustain . Moving down it will find support at 7067/7020/6869.85/6825/6685/6638.55/6432.70/6357.10/6338.50 points, where it could take a breather. Please note that sustained break below 6338.50 can drag it down to unbelievable lower   levels.

For 24-2-2016 sell call can be tried on the rise or below 7090 with a stop loss of above 7125 for a target of 7067/7020/6960.65/6869/6825/6767. The possible sell points on the rise could be at 7160-7180/7210/7227/7241.50/7295. The authentic stop loss for short trade on the rise would be above 7325; therefore 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. The on-going pullback rally seems to be over therefore long call should be completely avoided now and sell on the rise strategy should be followed.  

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.

CNX-BANK NIFTY--A TECHNICAL VIEW--24-2-2016

CNX--BANK NIFTY

Closed at 14008.35 on 23-2-2016(Open-14373.30/High-14373.30/Low-13961.75)

Support:- 13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 14120.90/14258/14331.20/14338.65/14344.20/14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It lacked strength throughout this up move(see my post for 23-2-2016) and today it opened flat to negative and thereafter plunged down and closed the day with a whopping loss of 376.45 points and near the low of the day. Furthermore it made lower top and broken its recent bottom of 14119.85 thereby making lower bottom on the line chart which indicates that the on-going rally may be over for good and fresh down slide may begin, therefore long call should be completely avoided till it crosses 14470 and sustain or shows some visible strength at the lower levels. It is therefore suggested to adopt sell on the rise strategy till it moves above 14470 and sustain. Moving down it will find good support at 13892/13810/13760/13690/13520/13414/13303.60 where it could take a breather. Please note that sustained break below 13303.60 can drag it down to much lower levels.

For 24-2-2016 sell call can be tried on the rise or below 13960 with a stop loss of above 14030 for a target of 13892/13810/13760/13690/13520. The possible sell points on the rise could be at 14250—14325/14450. The authentic stop loss for short trade on the rise would be above 14510; therefore 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 since 4-1-2016. The on-going pullback rally seems to be over therefore long call should be completely avoided now and sell on the rise strategy should be followed. 

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.

TRADING CALLS FOR 23-2-2016

TRADING CALLS

1. DIVIS LAB.

Sell below -986, S/L-992, Target-960/940.

               

2. ADANI  PORT.

Sell below -204, S/L-206, Target-196/193/184.

                                  

3. BRITANIA.

Buy above -2801, S/L-2795, Target-2855/2890..

4. MAHINDRA & MAHINDRA.

Sell below -1231, S/L-1238, Target-1208/1190.

                                    

5. MOTHERSON SUMI.

Sell below -217, S/L-219, Target-210.90/205/196.

6. NTPC.

Sell below -126, S/L-127.75, Target-121/118/.

7. SIEMENS.

Sell below-1032, S/L-1037, Target-1016/1008/990.

8. ULTRATECH CEMENT.

Buy above -2930, S/L-2921, Target-2980/3010.

                   

Note: Price stated here is of spot market.

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.

Contact me for strategic guidance to enter and exit the trade

CNX-NIFTY--A TECHNICAL VIEW--23-2-2016

CNX-NIFTY

Closed at 7233.30 on 22-2-2016 (Open-7208.85/High-7252.40/Low-7200.70.)

Support:-7226.85/7118.45/7208.85/ 7048.25/7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:- 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 moved in a very short range today, it crossed its first tough resistance point of 7241.50 intra-day but could close above it. Please note that the range of 7241.50---7295 is very important and tough range and if it fails to cross 7295 mark then the on-going rally may be over or it may correct sharply from here. Since it is very close to this range now therefore it is suggested to avoid long trade around this range and should only be attempted if it crosses 7295 mark and sustain because this the bear market territory threshold point. Please note that price wise it still looking o.k. as long as it holds 7140 on the closing basis. So those who wish to try long call can try if it maintains above 7227, but be alert below 7208 and exit trade below 7190.

For 23-2-2016 long call can be tried if it maintains above 7227 with a stop loss of below 7190 for a target of 7241.50/7267/7295/7310-7360. Similarly these points can also be used as sell points provided price show weak movement during the day and with the proper stop losses or sell call can be tried if it maintains below 7140 with a stop loss of above 7215 for a target of 7114/7037/6960. Sell call can also be tried if it falls below 7227 and maintains for some time with a stop loss of above 7245.  Please note that sell call should surely be attempted in the range 7275—7295 with a stop loss of above 7325 because as of now it seems that this on-going up move may not last beyond the point of 7295 for a long time. I once again repeat that since it is pullback rally therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. The price movement is still o.k. but it has entered into a highly important and tough zone, therefore it is suggested to avoid long now and should only be attempted if it crosses 7295 level and sustain. If it shows price weakness sell call can be tried.  

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.

CNX-BANK NIFTY--A TECHNICAL VIEW---23-2-2016

CNX--BANK NIFTY

Closed at 14373.25 on 22-2-2016(Open-14331.20/High-14467.15/Low-14322.65)

Support:- 14344.20/14338.65/14331.20/14258/14120.90/13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It moved in a short range today and closed with a small gain of 29.04 points. It has failed to cross its recent top of 14445 on the line chart in last five days which shows lack of strength in it .However some hope of moving up is still alive as long as it holds its recent bottom of 14119.85 on the line chart on the closing basis. Since it is not showing required strength and moreover, it is just a bear market rally therefore it is suggested to avoid long trade till is shows some visible strength but day trader can still try long call  if it sustains above 14330 with a stop loss of below 14250 but with utmost caution and care. Moving up it will face resistance at 14445-470/14590/14670/14754.65 and possibly the on-going up move may exhaust at any of these points so be watchful and alert.

For 23-2-2016 long call can be tried now but not below 14345 with a stop loss of below 14250 for a target of 14445/14590/14670. Since it is in down trend and the on-going up move is a bear rally only as of now so the above points could also be used as sell point also provided weakness is visible in the price movement with proper stop losses or sell call can be tried if it maintains below 14250 with a stop loss of above 14345 for a target of 14120/13971/13892/13810. Please note that sell call should surely be attempted in the range 14650--14750 with a stop loss of above 14820.I once again repeat that since it is in down trend therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. It is not showing required strength but still long call can be tried as suggested above because it is  holding on to its recent bottom on the line chart and price movement is not that weak. But if price moves otherwise short call should also be tried and must be in the range of 14650-14750. Please note that taking advantage of the pullback rally could be risky, so be alert and watchful in long trade.

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.

TRADING CALLS FOR 22-2-2016

TRADING CALLS

1. ACC.

Buy above -1281, S/L-1274, Target-1301/1310/1318.

2. APOLLO HOSPITAL.

Sell below -1420, S/L-1430, Target-1409/1380/1370/1340.

                                    

3. ASIAN PAINTS.

Sell below -848, S/L-855, Target-826/784/778.

                                  

4. AUROBINDO PHARMA.

Sell below -645, S/L-655, Target-620/616/604/601/588.

                                     Or

Sell near 675-683 but not above 683, S/L-687, Target-655/645/620/616.

5. AXIS BANK.

Sell below -390, S/L-393, Target-383/380/373--366.

6. BHARAT FORGE.

Sell below-766, S/L-774, Target-751/740/730/720..

7. COLGATE PALMOLIVE.

Sell below-830, S/L-835, Target-821/812/790.

8. DIVIS LAB.

Buy above -1002, S/L-994, Target-1010/1026/1036/1061.

                

9. GLENMARK PHARMA.

Buy above -751, S/L-746, Target-761.85/781/806.80.

                   

10. ICICI BANK.

Sell below-198, S/L-201, Target-190.50/188/185/175.

11. LIC HOUSING FINANCE.

Buy above-421.50, S/L-419, Target-433/442.

12. MARUTU SUZUKI.

Sell below-3559, S/L-3570, Target-3520/3483/3461.

13. RELIANCE INDUSTRIES.

Sell below -936, S/L-943, Target-925/916/910/888.

14. STATE BANK OF INDIA.

Buy above -165.30, S/L-163.70, Target-1168.60/169.50/170.75.

15. TATA MOTORS.

Buy above -320.50, S/L-317, Target-324/330/335/340.

16. TATA STEEL.

Buy above -256.50, S/L-253.25, Target-260/265/276.

17. TECH MAHINDRA.

Buy above -443, S/L-440, Target-458.50/467.85.

18. WOCKHARDT.

Buy above -816, S/L-805, Target-837/868/918.

                                  

Note: Price stated here is of spot market.

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.

Contact me for strategic guidance to enter and exit the trade

CNX-NIFTY--A TECHNICAL VIEW--22-2-2016

CNX-NIFTY

Closed at 7210.75 on 19-2-2016 (Open-7170.55/High-7226.85/Low-7145.95.)

Support:-7118.45/ 7048.25/7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:- 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 negative note and went down further and thereafter moved in a short range and in the last hour of trade it steadily moved up and closed near the high of the day. The  up move may continue further for few days provided it holds 7162.95 and then 7048.25 on the closing basis which may please be noted. Therefore long call can be tried but with utmost caution and care. Moving up it will face resistance at 7227/7241.50/7267/7295/ 7310/7360—7400 and possibly the on-going up move may exhaust at any of these points so be watchful and alert. . Since it is in down trend and the on-going up move is a bear rally only as of now so the above points could also be used as sell point also provided weakness is visible in the price movement.   

 Please note that it is a bear rally only and these rallies can end abruptly also, furthermore it is not very far from it very tough resistance points of 7241.50 and 7295 and it seems that it will not be that easy to cross these point specially 7295 mark, therefore it is suggested to handle long trade very carefully. I would once again caution safe trader not to take advantage of the in between up rallies in bear market as it can trap you unaware at higher levels. However aggressive intra-day trader can try long call if as mentioned below.  The long trade can safely be attempted only if it comes out of the bear territory mark of 7295 and sustain.

  

For 22-2-2016 long call can be tried if it maintains above 7227 or near but not below 7162.95 with a stop loss of below 7200 and 7120 respectively for a target of 7227/7241.50/7267/7295/7310-7360.Trying long call above 7227 would be relatively safe. Similarly these points can also be used as sell points provided price show weak movement during the day and with the proper stop losses or sell call can be tried if it maintains below 7114 with a stop loss of above 7170 for a target of 7037/6960. Sell call can also be tried if it does not cross 7227 mark or if it cross and fall below this level again and sustain then with a stop loss of above 7245.  Please note that sell call should surely be attempted in the range 7275—7295 with a stop loss of above 7325 because it seems that this rally may not last beyond 7295 for a long time. I once again repeat that since it is pullback rally therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. Still long call can be tried but with extreme caution as it is approaching very tough resistance area. But if price moves otherwise short call should also be tried and must be in the range of 7275-7295.  Please note that taking advantage of the pullback rally could be risky, so be alert and watchful in long trade.

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.

CNX-BANK NIFTY--A TECHNICAL VIEW--22-2-2016

CNX--BANK NIFTY

Closed at 14344.20 on 19-2-2016(Open-14243.45/High-14395.85/Low-14207.35)

Support:- 14338.65/14258/14120.90/13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It opened on a negative note and went down further and thereafter moved in a short range and in the last hour of trade it steadily moved up and closed near the high of the day. It is still not showing good strength, but the up move may still continue further for few days provided it holds 14119.85 on the closing basis which may please be noted. Therefore long call can still be tried but with utmost caution and care. Moving up it will face resistance at 14445-470/14590/14670/14754.65 and possibly the on-going up move may exhaust at any of these points so be watchful and alert.  Since it is in down trend and the on-going up move is a bear rally only as of now so the above points could also be used as sell point also provided weakness is visible in the price movement.   

 Please note that it is a bear rally only and these rallies can end abruptly also, I would therefore once again caution safe trader that not to take advantage of the in between up rallies in the bear market as it can trap you unaware at higher levels. However aggressive intra-day trader can try long call as mentioned below. The long trade can relatively safe if attempted above 14754.65.

For 22-2-2016 long call can be tried if it maintains above 14350 with a stop loss of below 14250 for a target of 14445/14590/14670. Similarly these target points can also be used as sell points also provided price show weak movement during the day with proper stop losses or sell call can be tried if it maintains below 14180 with a stop loss of above 14260 for a target of 14120/13971/13892/13810. Please note that sell call should surely be attempted in the range 14650--14750 with a stop loss of above 14820.I once again repeat that since it is in down trend therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. Since it is respecting the higher bottom on the line chart long call can be tried as suggested above. But if price moves otherwise short call should also be tried and must be in the range of 14650-14750. Please note that taking advantage of the pullback rally could be risky, so be alert and watchful in long trade.

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.

CNX-NIFTY--A TECHNICAL VIEW--19-2-2016

CNX-NIFTY

Closed at 7191.75 on 18-2-2016(Open-7177.40/High-7215.10/Low-7127.85.)

Support:- 7118.45/ 7057.35/7048.25/7021/6980.95/ 6976.35/6868.85/6638.55/6432.70/6357.10/6338.50/6300/6275/6129.

Resistance:- 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 with a huge up gap and went further higher and thereafter drifted down to fill the gap and it almost covered the gap and then moved up again and closed the day with a gain of 83.30 points and near the high of the day. Since it has closed above its previous top of 7162.95 on the line chart (see my post for 18-2-2016) and it has already made higher bottom of 7048.25 and now higher top is in the making, therefore as long as it holds 7162.95 and then 7048.25 on the closing basis this up move may continue for few days. But be alert in long trade if it consistently starts trading below 7162.95 during the day and exit long trade below 7100. Moving up it will face resistance at 7215/7241.50/7267/7295/ 7310/7360—7400 and possibly the on-going up move may exhaust at any of these points so be watchful and alert. Since it is in down trend and the on-going up move is a bear rally only as of now so the above points could also be used as sell point provided weakness is visible in the prices during the day.    

Please note that I would once again caution safe trader that not to take advantage of the in between up rallies in bear market, as these rallies are treacherous in nature and can trap you unaware at higher levels. However aggressive intra-day trader can try long call if they wish too as mentioned below.  The long trade can safely be attempted only if it comes out of the bear territory mark of 7295 and sustain.

    

For 19-2-2016 aggressive trader can try long call now or near but not below 7162.95 with a stop loss of below 7100 for a target of 7215/7241.50/7267/7295/7310-7360. Similarly these points can also be used as sell points provided price show weakness during the day and with the proper stop losses or sell call can be tried if it maintains below 7100 with a stop loss of above 7165 and add on position if it maintains below 7048 with a stop loss of above 7114 for a target of 6960/6868/6825. Please note that sell call should surely be attempted in the range 7275—7295 with a stop loss of above 7325. I once again repeat that since it is pullback rally therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. In view of the higher top & bottom on the line chart, it seems that the on-going up move may continue for few days, therefore long call can be tried as suggested above. But if price moves otherwise short call should also be tried and must be attempted in the range of 7275-7295.  Please note that taking advantage of the pullback rally could be risky, so be alert and watchful in long trade.

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.