CNX-NIFTY- A TECHNICAL VIEW -30-1-2017

CNX-NIFTY

Open-8610.50—High-8672.70---Low—88606.90—Close—8641.25 on

27-1-2017

Support:-8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: -8654.75/8672.70/ 8678.75/8728.35/8736.95/8745.80/8800.65/8806.95/8844.80/8849.75/8893.35/8913.45/8968.70/8996.60/9119.20.

It opened firmly on a positive note and closed with gain of 38.50 points. It is exhibiting good strength and by all means it is the market for long trade now but with extreme caution because of one major reason that it has retraced the fall from its recent major top of 8968.70 and bottom of 7893.80 and its all time high top of 9119.20 and recent major bottom of 7893.80 by more than 61.80%, furthermore it is slightly overbought too, therefore it is vulnerable for correction or may be for complete exhaustion at this juncture. Although overall technical parameters are indicating tremendous strength for further up move ahead. So if this on-going up move has to continue and Nifty to hit a new all time high then it has to hold the range of 8600-8550 on the down side similarly moving up it has to cross the major hurdles on the way at 8715/8754/8830/8874 and that too in a reasonable time and sustain above 8874 level, else this on-going up move may get into corrective mode or may exhaust completely at any of these points which may please be noted.    

In view of the above observation long trade can be tried above 8652 with a stop loss of below 8600 or above 8673 with a stop loss of below 8640 avoid buy on decline today. It would be safe to buy above 8673 in the entire coming week starting from 30-1-2017. Avoid long trade below 8600 in any case for now.

Remark: -It is exhibiting robust strength but in view of the overall observation it seems that it is evenly poised with an upward bias as of now. Therefore long call can only be tried above 8673 and avoid buy on decline today.

 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.