CNX-NIFTY- A TECHNICAL VIEW -20-1-2017

CNX-NIFTY

Open-8418.40—High-8445.15---Low—8404.05—Close—8435.10 on

19-1-2017

Support:- 8433/ 8427/8400.25/8380/8350/ 8330/8306.85/8294.95/8274.95/8259.35/8243.80/8230.65/8210.10/8185.

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

It held the level of 8373(see my post for 18-1-17) , closed above its recent top of 8412.80 on 18-1-2017 and today it closed above its long term moving average also which is placed at 8426.51 or say 8427 (it changes every day) for 20-1-2017 is a good sign, so it seems that the on-going up move may continue as long as it holds the level of 8373 but it will keep the up momentum in rhythm only if it sustains above its long term moving average i.e.8427,so watch out. It is showing good strength, but moving up it will face stiff resistance in the range of 8485---8600 and then between 8795—9050, so be watchful and cautious in your trade around these range. Please note that break below 8373  may push it for corrective down move, however as long as it remains above its last long term moving average which is placed at 8228(it changes every day) and benchmark points of 8210.10 & 8185.80 for the year 2017 there is no serious threat to the uptrend which may please be noted.

In view of the above observation long call can be tried on the dip but not below 8373 for now with a stop loss of below 8360.  

                                                                                            

TRADING STRATEGY

1. Long call can be tried if it sustains above the level of 8427 with a stop loss of below 8390. The upside target could be 8461/8477/8506—8538/8558/8598.45.  

2. Aggressive trader can try long call on decline but not below 8373 as of now with a stop loss of below 8360.

3. Short call can only be tried if it sustains below 8373 for some time with a stop loss of above 8401 for a target of 8350/8330/8306/8275. It could be a risky trade but worth trying.

Remark: - It is a buy on dip market now. It closed above its long term moving average, exhibiting good strength, so long call can be tried as suggested above but it would be better to try it above 8427 or else near 8390--8373.   

 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.