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 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.
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Thank you for sharing your views.