CNX-NIFTY- A TECHNICAL VIEW -10-1-2017

CNX-NIFTY

Open-8259.35—High-8263---Low—8227.75—Close—8236.05 on

9-1-2017

Support:-8230.65/8210.10/8185.80/8162/8133.80/8077/8060/8056/8002/7992/7988/7940/7927.05/7916.40/ 7897/7893.80/7715.80/7678.35/7644/7615.85/7405.15.

Resistance:- 8274.95/8294.95/8306.85/8400.25/8476.70/8506/8518/8558/8598.45.

The broad observation remains the same (see my post of 9-1-2017) and it still looks fatigued therefore either it could spend some time here or correct from here before resuming the up move again. It is therefore suggested to follow almost the same trading strategy of 9-1-2017 with some change on 10-1-2017.

TRADING STRATEGY

1. It would be safe to try long call if it moves and sustain above 8275 with a stop loss of below 8230 and can add on position if it moves and sustain above 8307 with a stop loss of below 8255 for added position. The upside target could be 8338/8380/8421.

2. Aggressive trader can try long call on decline also but not below 8217 with a stop loss of below 8180, it could be a risky trade but with even chances.

3. Although it is a buy on dip market now but since it is looking tired and may correct from here therefore a contrarian short call can be tried near but not above 8275 only if it fails to cross the said level for at least first one and half hour of trade with a stop loss of above 8307, it could be a highly risky trade but worth trying. The downside target could be 8243/8233/8217/8210/8195/8185/8133 or can try sell call if it maintains below 8243 with a stop loss of above 8275. Try sell call  below 8210 and below 8150 for sure.

Remark: - As of now it is a buy on dip market but it could still correct from here before moving up again therefore it advised to exercise some caution in long trade. Avoid long call below 8210.10 and below 8185 for sure. If price movement permits short call could be worth trying as suggested for taking advantage of in between down correction.

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.