CNX--BANK NIFTY-A TECHNICAL VIEW 31-1-2017

CNX--BANK NIFTY

Closed at 19585.25 on 30-1-2017(Open-19718.80/High-19767.05/Low-19561.10)

Support:-19518/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance:-19794.95/19816.50/19922.70/20283/20309.65/20541.65/20575.80/20907.55.

The broad observation remains the same for 31-1-17as it was for 30-1-17(see my post). It corrected today but still holding the downside range of 19700—19450 but if it goes below 19560 and sustain then it could go down further and may break the aforesaid range and then expected to take support at 19276.50, which is the breakout top and break below this can accelerate the fall and the on-going up move may be in danger. Today’s move was slightly shaky and indicates that it could correct further from here. 

 In view of the above  long call can be tried above 19720 with a stop loss of below 19640 or above 19600 with a stop loss of below 19560 or buy on decline near 19276.50 with a stop loss of below 19200. But it would be safe to buy above 19720.

 Although it is not the market for fearless short call, but since it reasonably corrected today and if it falls below 19560 and sustain then it could correct further, so aggressive trader can take contrarian short call below 19560 with a stop loss of above 19600 for a target of 19534/19518/19450/19276.50. It could be a risky trade.

Remark: -It corrected today and it seems that correction may deepen, therefore it would be safe to attempt long call above 19720 but aggressive trader can try on decline too near 19276 but not below it. Short call can be worth trying as suggested above.  

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.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

CNX-NIFTY- A TECHNICAL VIEW -31-1-2017

CNX-NIFTY

Open-8635.55—High-8662.60---Low—8617.75—Close—8632.75 on

30-1-2017

Support:-8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: -8654.75/8672.70/ 8678.75/8728.35/8736.95/8745.80/8800.65/8806.95/8844.80/8849.75/8893.35/8913.45/8968.70/8996.60/9119.20.

The broad observation remains the same for 31-1-17 as it was for 30-1-17(see my post).It moved in a short range today and closed with a meager loss of 8.50 points. It is exhibiting good strength technically but not to forget that since it has retraced more that 61.8% from its major tops and bottoms it may slip into deep correction also, if it fails to cross the important hurdles at 8715/8754/8830/8874 in reasonable period of time. Furthermore in wake of monthly close tomorrow and Union Budget-2017 on 1-2-2017 it could witness huge volatility for next two days; therefore one should be extremely careful in long trade at this point of time.

 It is therefore suggested to try long call above 8652 with a stop loss of below 8600 or above 8673 with a stop loss of below 8630, avoid buy on decline now. It would be safe to buy above 8673 in the entire on-going week. Avoid long trade below 8600 in any case for now.

 Although it is not the market for short call, but since it corrected marginally today and if it fails move above 8636 for some time then it could correct further, so aggressive trader can take contrarian short call near but not above 8636 with a stop loss of above 8675 for a target of 8617/8600/8560. It could be a risky trade but worth trying.

Remark: - Despite small correction today it is still on a good footing and in overall observation it seems that it is evenly poised now with a slight upward bias. Therefore long call can only be tried above 8673 and avoid buy on decline for now. Short call can also be attempted as suggested above but it could be a risky proposition mind you.

 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.

CNX--BANK NIFTY-A TECHNICAL VIEW 30-1-2017

CNX--BANK NIFTY

Closed at 19708.30 on 27-1-2017(Open-19588.40/High-19794.95/Low-19534.90)

Support:-19518/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance:-19794.95/19816.50/19922.70/20283/20309.65/20541.65/20575.80/20907.55.

It is exhibiting superb strength and in last four days it has moved up by more than 1050 points on intraday basis and 850 points on the closing basis which is phenomenal. But the concerning thing is that is has opened with an up gap for two consecutive days and the gap still exist moreover the gaps are not good for sustained rise and if it makes an attempt to fill the gap in next 2-3 days then it could come down sharply to 19518 and then at 19054 and secondly it has retraced the fall from its recent major top of 20575.60 and bottom of 17606.90 and its all time high top of 20907.55 and recent major bottom of 17606.90 by more than 61.80%, furthermore it is slightly overbought too, therefore it is vulnerable for correction or may be for complete exhaustion at this juncture. Although overall technical parameters are indicating tremendous strength for further up move ahead. So if this on-going up move has to continue and Bank Nifty to hit a new all time high then it has to hold the range of 19700--19450 on the down side similarly moving up it has to cross the major hurdles on the way at 19876/19983/20130/20248 and that too in a reasonable time and sustain above 20248 level, else this on-going up move may get into corrective mode or exhaust completely at any of these points which may please be noted.   

In view of the above observation long trade can be tried above 19710 with a stop loss of below 19640 or above 19795 with a stop loss of below 19700 avoid buy on decline today. It would be safe to buy above 19795 in the entire coming week starting from 30-1-2017. Avoid long trade below 19640 in any case for now.

Remark: -It is exhibiting robust strength but in view of the overall observation it seems that it is evenly poised with an upward bias as of now. Therefore long call can only be tried above 19795 and avoid buy on decline today.

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.

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.

                                                                                      

Contact me for strategic guidance to enter and exit the trade.

CNX-NIFTY- A TECHNICAL VIEW -30-1-2017

CNX-NIFTY

Open-8610.50—High-8672.70---Low—88606.90—Close—8641.25 on

27-1-2017

Support:-8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: -8654.75/8672.70/ 8678.75/8728.35/8736.95/8745.80/8800.65/8806.95/8844.80/8849.75/8893.35/8913.45/8968.70/8996.60/9119.20.

It opened firmly on a positive note and closed with gain of 38.50 points. It is exhibiting good strength and by all means it is the market for long trade now but with extreme caution because of one major reason that it has retraced the fall from its recent major top of 8968.70 and bottom of 7893.80 and its all time high top of 9119.20 and recent major bottom of 7893.80 by more than 61.80%, furthermore it is slightly overbought too, therefore it is vulnerable for correction or may be for complete exhaustion at this juncture. Although overall technical parameters are indicating tremendous strength for further up move ahead. So if this on-going up move has to continue and Nifty to hit a new all time high then it has to hold the range of 8600-8550 on the down side similarly moving up it has to cross the major hurdles on the way at 8715/8754/8830/8874 and that too in a reasonable time and sustain above 8874 level, else this on-going up move may get into corrective mode or may exhaust completely at any of these points which may please be noted.    

In view of the above observation long trade can be tried above 8652 with a stop loss of below 8600 or above 8673 with a stop loss of below 8640 avoid buy on decline today. It would be safe to buy above 8673 in the entire coming week starting from 30-1-2017. Avoid long trade below 8600 in any case for now.

Remark: -It is exhibiting robust strength but in view of the overall observation it seems that it is evenly poised with an upward bias as of now. Therefore long call can only be tried above 8673 and avoid buy on decline today.

 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.

DOW JONES INDUSTRIAL AVG INDEX- A TECHNICAL UPDATE-27-1-2017

DOW JONES INDUSTRIAL AVG INDEX

CLOSED AT: - 20100.91 ON 26-1-2017.

                                                                           

SUPPORT:-

19999—19973/19966.43/19872.86/19762.60/19718.67/19677.94/19623.19/19558.42.

 RESISTANCE:-20230/20300/20530/20680/20905/21050/21300.

(Figures in bold are important)

It is on a very sound technical footing now. It consolidated in the range of 19999.63---19677.94 for quite some time and then given an upside breakout on 25-1-2017 which is good sign and indicates that further rise ahead provided it holds its multiple top breakout range of 19999—19973, then its most critical benchmark points of 19872.86 & 19762.60 for the year 2017 and finally the recent multiple bottom range which is between 19748—19677. So broadly it has bed of support in the range of 19999---19677 and only sustained break below 19677 can put it into a deep corrective mode which may please be noted. But be alert in long trade below the yearly benchmark points also.

It is important to mention here that overall it is the market for the  long trade but be circumspect in fresh long trade below the breakout range of 19999—19973 and avoid long call completely  below its multiple bottom range of 19748--19677. In view of this observation it seems prudent that long call can be tried above or within the breakout range of 19999—19973 with a stop loss of below 19920 and then near or within the multiple bottom range of 19748—19677 but not below 19677 with a stop loss of below 19620. But I once again repeat that it would be safe to try long call above the breakout range of 19999—19973 only.   

     

 Kindly note that as it is in uncharted territory now therefore the upside target could be 20230/20300/20530/20680/20905/21050/21300 based on Fibonacci Retracement Points and up channel resistance points.

 REMARKS: - Technically it is tremendously strong at this point of time and no doubt it the market for long trade, but it is suggested to try long call above the breakout range of 19999—19973 only at this point of time.  

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 the trade.

CNX-NIFTY- A TECHNICAL VIEW -27-1-2017

CNX-NIFTY

Open-8499.45—High-8612.60---Low—8493.95—Close—8602.75 on

25-1-2017

Support:-8598.45/8558/8518/8506/8493.95/8476.70/8461.05/8460.30/8428/8373/8349.35/8340.95/ 8322.25/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: - 8678.75/8728.35/8736.95/8806.95/8844/8893.35/8968.70/8996.60/9119.20.

It opened with a small up gap and did not make any effort to fill the gap and gave a robust up move and closed with a gain of 126.95 points and near the high of the day, it also crossed its first tough resistance range effortlessly which was between 8488—8600(see my post for 25-1-2017), which shows tremendous strength in it and indicates further rise ahead. Please note that 8600 will act as good support now and it has to sustain above it for the on-going up move to continue.    

Although it is exhibiting huge strength technically but the concerning part is today’s gap which it did not fill and if it attempts to fill the gap in next 2-3 days, which is technically possible then it could come down to 8480 level, secondly it has retraced more than 61.80% (8558.08) from its recent major top of 8968.70 and bottom of 7398.80. So this rally may exhaust here also but if this rally has to move on it has to cross 8791 level and sustain or else it may fizzle out around this level or earlier. Moving up from here it will face resistance in between also at 8678.75/8715/8754/ points, which may please be noted. So, overall no doubt that the market is for long trade now but looking at the volatility and wild movement trade should be handled with extreme caution.

In view of the above observation long trade can be tried above 8603 with a stop loss of below 8540 or buy on decline near 8480--62 but not below it with a stop loss of below 8400. It would be safe to buy above 8603 on 27-1-2017.

Please note that if it opens with an up gap on 27-1-2017 i.e. above 8612.60 then wait for some time to initiate long trade because it may fill the days gap, and if it does and sustain above 8603 then one can initiate long trade but the aggressive trader can initiate long trade even on the gap up opening with a stop loss of below 8580(it could be slightly risky trade). It is important to mention here that continuous gap up opening speaks of good strength but are not that safe always for sustained rise. It is therefore suggested to handle your trade very vigilantly in case of gap up opening.     

Remark: -It is exhibiting robust strength but in view of the overall observation it seems that it is evenly poised with an upward bias as of now. Therefore long call can only be tried above 8603 and avoid buy on decline today.

 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.

TRADING CALLS FOR 27-1-2017

TRADING CALLS

1. ADANI PORT.

Buy above -306.10, S/L-304, Target-309.70/317/331.

2. AMBUJA CEMENTS.

Buy above -230, S/L-228.50, Target-236/241.50/245.

3. ASHOK LEYLAND.

Sell below -86.30, S/L-87.10, Target-85.25/84.30/83.35/82.70.

4. AUROBINDO PHARMA.

Sell below -704, S/L-707, Target-698/680/678/667/645.

5. BAJAJ AUTO.

Buy above -2850, S/L-2840, Target-2866/2875/2907/2918/2958.

6. BEL.

Sell below -1509, S/L-1515, Target-1482/1472/1455/. 

7. SUN PHARMA.

Sell below -634, S/L-637, Target-632/627/611.85/595.

Note: Price stated here is of spot market.

                                  

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.

Contact me for strategic guidance to enter and exit the trade

 

                     

                   

                              

                                         

                                      

                                        

                                         

                                  

                                        

CNX--BANK NIFTY-A TECHNICAL VIEW 27-1-2017

CNX--BANK NIFTY

Closed at 19473.20 on 25-1-2017(Open-19120.05/High-19518.45/Low-19114.15)

Support:-19276.50/19158/19096.70/19059/18961/18781.25/17739.65/18722.85/18551/18537/18515---18441/18443.65/ 18242.10/18177.20/18143.70/17952.60/17929/17910/17606.

Resistance:-19493.50/19587.80/19625/19666.80/19730—35/19816.50/19922.70/20163/20227.20/20264.80/20309.65/20541.65/20575.80/20628/20907.55/21080.

Today's robust up move has brought it almost at par with Nifty as far as technical parameters are concerned. It has closed way above its recent top of 19164.50 on the line chart and also above its recent top of 19276.50 on the bar chart thus giving an upside breakout on both the line and the bar chart, which indicates that it may rise further from here in coming days.

It is showing tremendous strength as it closed with a huge gain of 449.69 points and near the high of the day crossing some of the important levels, so it seems that it has turned buy on dip market again but today’s relentless up move and the volatility it exhibited was slightly scary. Please note that today was the end of Jan-2017 future series and   this type of rise on the series settlement day can be due to short covering also, if it is so then sustaining today’s vertical rise could be difficult, furthermore it opened with a up gap today and did not make any effort to fill the gap during the day, so if it attempts to fill the gap in next 2-3 days which is technically possible, then it could come down to 19054 which may please be noted.

It is also very important to mention here that it has already retraced more than 61.8 %( 19441.68) from its major top of 20575.80 and bottom of 17606.90. So this rally may exhaust here also but if this rally has to move on it has to cross 19982.02 level and sustain or else it may fizzle out around this level or earlier. Moving up from here it will face resistance in between also at 19565/19676/19735/ 19816.50/19875.13/19922.70 points, which may please be noted. So, overall no doubt that the market is for long trade now but looking at the volatility and wild movement trade should be handled with extreme caution.

In view of the above observation long trade can be tried above 19475 with a short stop loss of below 19400 or buy on decline near the breakout point of  19276.50 and then near 19165 but not below it  with a stop loss of below 19040. It would be safe to buy above 19475 on 27-1-2017. The upside target could be 19565/19676/19735/ 19816.50.

Please note that if it opens with an up gap on 27-1-2017 i.e. above 19518.15 then wait for some time to initiate long trade because it may fill the days gap, and if it does and sustain above 19475 then one can initiate long trade but the aggressive trader can initiate long trade even on the gap up opening with a stop loss of below 19430(it could be slightly risky trade). It is important to mention here that continuous gap up opening speaks of good strength but are not that safe for sustained rise. It is therefore suggested to handle your trade very vigilantly in case of gap up opening.     

Remark: -It is exhibiting robust strength but in view of the overall observation it seems that it is evenly poised with an upward bias as of now. Therefore long call can only be tried above 19475 and avoid buy on decline today.

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.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

CNX--BANK NIFTY-A TECHNICAL VIEW 25-1-2017

CNX--BANK NIFTY

Closed at 19023.50 on 24-1-2017(Open-18931/High-19054.30/Low-18906.95)

Support:-18961/18781.25/17739.65/18722.85/18551/18537/18515---18441/18443.65/ 18242.10/18177.20/18143.70/17952.60/17929/17910/17606.

Resistance:  19059/19096.70/19158/19276.50/19493.50/19666.80.

It is showing less strength in comparison with Nifty as it has not crossed its recent top of 19164.50 on the line chart and top of 19276.50 on the bar chart but moved above its short term moving averages and also above the top end of the long term moving average which is placed at 18911.81(it changes every day) for 25-1-2017.

In view of the above long call can be tried only above 19025 with a stop loss of below 18900 and not on decline because it has not crossed its recent top on the line and the bar chart and if it does not cross the aforesaid tops in coming days or start making fresh higher tops and bottoms then it may continue to make lower top and bottom and that would be concerning which may please be noted. The upside target for long trade could be 19059/19097/19165/19277/19442.

Remark: - For today long call can be only be tried above 19025 with suggested stop loss as it has still not shown the strength which Nifty is showing.

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.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

CNX-NIFTY- A TECHNICAL VIEW -25-1-2017

CNX-NIFTY

Open-8407.05—High-8480.95---Low—8398.15—Close—8475.80 on

24-1-2017

Support:-8476.70/8461.05/8460.30/8428/8373/8349.35/8340.95/ 8322.25/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: - 8506/8518/8558/8598.45/8678.75.

It is witnessing huge volatility, one day it is breaking all the key parameters and then in a day or two it bounces back again above it, this volatility may continue till the most important event for the year that is Budget 2017-18 is presented, which is slated for 1^st Feb-2017. Therefore trade should be handled vigilantly and cautiously till the event is over.

Today it closed above its recent top of 8435.50 on the line chart, given upside breakout from the top of 8461.05 on the bar chart, moved above its short term moving average and also above its top end long term moving average which is at 8428.96(it changes every day) for 25-1-2017. All the parameters now indicate good strength therefore long trade should be the flavor of the day but in wake of huge volatility one should be extremely careful also in long trade. Long call can be tried above 8475 or on decline but not below 8428 with a stop loss of below 8398 for a target of 8488/8523/8567/8600 these targets are good resistance point too which may please be noted.

 Remark: - It has turned the table today by moving above all the key parameters, which is required for a safe long trade therefore long call  can be tried as suggested above. However, looking at the volatility trade should be handled very carefully.

 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.

CNX-NIFTY- A TECHNICAL VIEW -24-1-2017

CNX-NIFTY

Open-8329.60—High-8404.35---Low—8327.20—Close—8391.20 on

23-1-2017

Support:-8373/8349.35/8340.95/ 8322.25/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: - 8428/8460.30/8461.05/8476.70/8506/8518/8558/8598.45/8678.75.

The broad observation remains the same (see my post for 23-1-2017), although it staged a short bounce back today but it seems that it could still go down till it closes above 8436 and then sustain above its top end of the long term moving average which is place at 8428(it changes every day) for 24-1-2017 or make higher high and higher lows on the bar chart. It is therefore suggested that one should be circumspect in initiating long trade now. However those who wish to try can go for long trade above 8392 with a stop loss of below 8340 for a target of 8428/8436/8462. Similarly short call can also be tried on the rise near but not above 8436 with a stop loss of above 8462 but it would be safe to try short call below 8340.95 with a stop loss of above 8373 for a target of 8327/8312/8294/8274.95/8244/8230/8210.  

Remark: - Despite today’s rise it still seems that the buy on dip market may have ended for the time being and it may have turned into sell on the rise market now till it starts making higher top & bottom again. Therefore avoid long call now but aggressive trader can be try it as suggested above or around the suggested range (see my post of 23-1-2017), instead it is worth try short call at this point of time as suggested above.   

 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.

CNX-NIFTY- A TECHNICAL VIEW -23-1-2017

CNX-NIFTY

Open-8404.35—High-8423.65---Low—8340.95—Close—8349.35 on

20-1-2017

Support:-8340.95/ 8322.25/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: - 8373/8460.30/8461.05/8476.70/8506/8518/8558/8598.45/8678.75.

It gave adequate signal in last couple of days that it could slip into corrective mode (see my last few post), first it broke the chain of higher top and bottom on the line chart, secondly it could not sustain above its top end of the long term moving average which was at 8427 for 20-1-2017 although it did close above it for a day and finally it could not cross the tough resistance range of 8419-8485(see my earlier post).

Today’s down move has given severe jolt to the on-going up move as it  effortlessly broke the multiple support area in the range of 8378—8373 on the bar chart, broke  short term moving averages and is running way below its top end of the long term moving average range of 8428---8230(it changes every day) for 23-1-2017. Looking at the intensity of the fall today and its close near the weekly low of 8340.95, it seems that fall may further accelerate and could last for few days. But moving down it will find good support in the range of 8327---8230 and then from, its critical benchmark point of 8210.10 & 8185.80 for the year 2017. So it may bounce back from the range of 8244—8230---8210 or earlier, but if it consistently starts trading below its last long term moving average which is at 8230 (it changes every day) for 23-1-17 then it could break the benchmark points for 2017 too and may slip into deep down correction.

It is needless to mention here that it has to sustain above its top end of the long term moving average to get the smooth up momentum on.

In view of the above observation one should avoid  long call now but can be tried on decline near 8244—8230---8210 but not below 8210with a strict stop loss of below 8170 or if it gives some indication of correction completion at any point of time. Instead short call can be tried now below 8340 with a stop loss of above 8374 for a target of 8327/8312/8294/8274.95/8244/8230/8210 or on the rise but not above 8420 with a stop loss of above 8440.

Remark: - With today’s severe fall it seems that the buy on dip market may have ended for the time being and it may have turned into sell on the rise market now till it starts making higher top & bottom again. Therefore avoid long call now but can be tried in the suggested range or earlier provided it give some visible indication that the down correction is over, instead it is worth try short call at this point of time as suggested above.   

 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.