CNX-NIFTY- A TECHNICAL VIEW -12-1-2017

CNX-NIFTY

Open-8327.80—High-8389---Low—8322.25—Close—8380.65 on

11-1-2017

Support:-8380/8350/ 8330/8306.85/8294.95/8274.95/8259.35/8243.80/8230.65/8210.10/8185.

Resistance:-8380/ 8400.25/8433/8476.70/8506/8518/8558/8598.45.

It opened with an up gap and steadily moved up during the day and closed near the high of the day with a gain of 92.05 points.  It is showing good strength and the momentum will further accelerate once it move and sustain above its last long term moving average which is placed at 8421(it changes every day) for 12-1-2017. It may face some resistance at 8421 level but the way it is moving up it seems that eventually it will cross this level; however one should be slightly careful in long trade around this point. There is no doubt that it is buy on dip market now therefore every reasonable decline should be used for buying but not below 8270 as of now.

It is very important to mention here that  it made no effort to fill the today’s gap ,so if it comes down to fill the gap in next 2-3 trading session which is technically possible ,in that case it could come down to 8294 level,so be watchful and do not hurry to initiate long trade on the opening bell, furthermore if it opens with an up gap i.e. above 8390 on 12-1-2017 then for sure do not jump on to initiate long trade immediately,  instead watch the market for some time and let it settles down then take your trading call. Please note that if it consistently starts trading below 8380 then it could correct, so long call below 8380 should be avoided and tried after reasonable decline. 

I once again reiterate that as long as it is above its benchmark points of 8210.10 & 8185.80 for the year 2017 there is no serious threat to the uptrend, however it could witness in between down correction moving up.

TRADING STRATEGY

1. Long call can be tried if it sustains above 8381fo some time with a stop loss of below8350. The upside target could be 8421/8433/8458/8477/8506--8538.  

2. Aggressive trader can try long call on decline at appropriate points  but not below 8273 with a stop loss of below 8230, it could be a risky trade but with even chances.

Remark: - As of now it is a buy on dip market. It is showing good strength but be careful in long trade as it is approaching its tough resistance point of 8421. Long trade is recommended but 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.