Monday, 30 January 2017

CNX-NIFTY- A TECHNICAL VIEW -31-1-2017

CNX-NIFTY

Open-8635.55—High-8662.60---Low—8617.75—Close—8632.75 on
30-1-2017

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.


The broad observation remains the same for 31-1-17 as it was for 30-1-17(see my post).It moved in a short range today and closed with a meager loss of 8.50 points. It is exhibiting good strength technically but not to forget that since it has retraced more that 61.8% from its major tops and bottoms it may slip into deep correction also, if it fails to cross the important hurdles at 8715/8754/8830/8874 in reasonable period of time. Furthermore in wake of monthly close tomorrow and Union Budget-2017 on 1-2-2017 it could witness huge volatility for next two days; therefore one should be extremely careful in long trade at this point of time.

 It is therefore suggested to try long call above 8652 with a stop loss of below 8600 or above 8673 with a stop loss of below 8630, avoid buy on decline now. It would be safe to buy above 8673 in the entire on-going week. Avoid long trade below 8600 in any case for now.

 Although it is not the market for short call, but since it corrected marginally today and if it fails move above 8636 for some time then it could correct further, so aggressive trader can take contrarian short call near but not above 8636 with a stop loss of above 8675 for a target of 8617/8600/8560. It could be a risky trade but worth trying.

Remark: - Despite small correction today it is still on a good footing and in overall observation it seems that it is evenly poised now with a slight upward bias. Therefore long call can only be tried above 8673 and avoid buy on decline for now. Short call can also be attempted as suggested above but it could be a risky proposition mind you.

 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 pointsDO NOT TRADE WITHOUT STOP LOSS.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit  trade.



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Thank you for sharing your views.