CNX-NIFTY- A TECHNICAL VIEW -2-1-2017

CNX-NIFTY

Open-8119.65—High-8197---Low—8114.75—Close—8185.80 on

30-12-2016

Support:-8077.50/8063/8056.50/8002/7992/7988/7940/7927.05/7916.40/ 7897/7893.80/7715.80/7678.35/7644/7615.85/7405.15.

Resistance:- 8199/8230.65/8250.80/8274.95/8294.95/8400.25/8476.70/8506/8518/8558/8598.45.

Since it held on to its critical point of 7897.25 on the closing basis it gave a good up move for last few days and ended the week with a gain of 200.05 points. As mentioned earlier that it is a buy on dip market now(see my post of 28-12-16), therefore it seems that the on-going up move is likely to continue with in between corrective down move. Please note that since it had a vertical rise from 7893.80 to 8197 in last 4 days, furthermore it is just below its tough resistance point of 8199 and also below its important long term moving average which is placed at 8220(it changes every day) for 2-1-2017, so the range of 8199—8220 is very tough range for it. Therefore it may correct from this range before resuming the up move again. In view of the above observation it is suggested to try long call if it sustain above 8199 but it would be relatively safe to try it above 8220 with a stop loss of below 8180 or on decline at proper level but not below 8080 with a stop loss of below 8050.

It is important to mention here that yearly close of 8185.80 and the opening figure on 2-1-2017(make a note of it on the opening) will be the benchmark point for your trade for the whole year of 2017, therefore it is suggested that one should be circumspect in long trade if it starts sustaining below the aforesaid mentioned points and vice versa.

Remark: - It is in the downtrend. But now the up move is on within the downtrend therefore buy on dip strategy should be followed till it gives visible sign of up rally exhaustion. Since it is near its tough resistance range therefore it would be safe to try long call on decline as suggested above or else if it moves and sustain above 8220.

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.

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.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit  trade.