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.