CNX-NIFTY- A TECHNICAL VIEW -13-2-2017

CNX-NIFTY

Open-8812.35—High-8822.10---Low—8771.20—Close—8793.55 on

9-2-2017

Support: - 8754/8715/8672.70/8641/8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: -8801.05/8822.10/8830/8844.80/8849.75/8874/8893.35/8913.45/8968.70/8996.60/9119.20.

The broad observation remains the same (see my post of 10-2-2017). It is still on a strong footing technically and expected to continue the up move but the volatility is slightly concerning , furthermore moving up the range of 8830---9030 will pose very stiff resistance therefore it may not be a smooth up journey and it may witness correction at any point within this range, so be watchful in your trade. Please note that it has to sustain above 8754 consistently on the closing basis for this up move to continue. But as long as it holds the range of 8650—8480 the long term uptrend will remain intact.

The range for the week starting from 13-2-17 is between 8822.10---8715 with a critical support point at 8754 and breakout on the either side of the range will decide the direction of the market for the week. Since it closed near the upper end of the range therefore chances of giving upside breakout seems bright.

In view of the above it would be relatively safe for risk averse trader to try long call once it closes above 8801.05. However aggressive trader can try long call above 8795 with a stop loss of below 8754 for a target of 8802/8822.10/8830/8874/8931 and can add fresh long call if it moves and sustain above 8822.10 with a stop loss of below 8790. Please note that in case of gap up opening wait for some time for market to settle down before initiating trade.

Remark: - The overall technical setup is good but the volatility is concerning, however long call can be tried above 8795 but with extreme caution because the range of 8802---8931 will pose very stiff resistance.

 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.