CNX-NIFTY- A TECHNICAL VIEW -17-1-2017

CNX-NIFTY

Open-8390.95—High-8426.70---Low—8374.40—Close—8412.80 on

16-1-2017

Support:-8400.25/8380/8350/ 8330/8306.85/8294.95/8274.95/8259.35/8243.80/8230.65/8210.10/8185.

Resistance: - 8424/8433/8476.70/8506/8518/8558/8598.45/8678.75.

The broad observation remains the same (refer the post of 16-1-2017) with slight change in the figures. Its long term moving average is placed at 8423.37(it changes every day) for 17-1-2017 and as long as it holds 8400 level on the closing basis and then holds the level of 8373 the up move may continue, but close below 8400 and then break below 8373 may start the down correction. Since the up momentum is expected to accelerate only if it sustains above its last long term moving average I .e 8423.37. Therefore it is suggested to try long call above 8424 with a short stop loss of below 8390 but the authentic stop loss for long trade would be below 8373.  

TRADING STRATEGY

1. Long call can be tried now but not below 8400 but it would be relatively safe to try long call if it moves and sustains above 8424 for some time with a stop loss of below 8373. The upside target could be 8442/8461/8477/8506—8538/8558/8598.45.  

2. Aggressive trader can try long call on decline at appropriate points  but not below 8294 with a stop loss of below 8230, it could be a risky trade but with even chances.

3. Short call can only be tried below 8373 with a stop loss of above 8413 for a target of 8350/8330/8306/8275. It could be a risky trade.

Remark: - As of now it is a buy on dip market. It is showing good strength therefore long call can be tried now but it would be safe to try long call if it moves and sustain above 8424 for some time. Avoid fresh long call below 8400.

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.