CNX-NIFTY- A TECHNICAL VIEW -14-2-2017

CNX-NIFTY

Open-8819.80—High-8826.90---Low—8754.20—Close—8805.05 on

13-2-2017

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

It opened near the previous day’s high of 8822.10 and crossed it and made a high of 8826.0 for the day thus giving an upside break, but could not sustain even for five minutes above it and slipped down and went on to break previous day’s low of 8771.20 and made a low of 8754.20 for the day but finally it recovered and closed with a meager gain of 11.50 points. Although it closed above its recent closing top of 8801.05 which indicates that the up move may continue, but today’s intraday movement showed weakness and volatility still persist which is not good sign for a steady up move, therefore it may treacherously behave in coming days and may end the up move abruptly which may please be noted (see my earlier post). Furthermore moving up it will face very stiff resistance at 8830—8845—8850—8874—8894--8969---9030 levels(see my earlier post), so the up journey may not be smooth from here  and some technical indicators are showing weakness and pointing that it  could correct from here. Therefore there is a strong chance that market could deceive the traders and trap them unaware, so be agile and vigilant in managing your trade.

In view of the above observation long call can be tried above 8808 with a stop loss of below 8754 for a target of 8822.10/8830/8850/8874/8931 or on decline near but not below 8769 with a stop loss of below 8740. Please note that it came near its strong resistance point of 8830 in last three days but could not cross it therefore it would be safe to try long call if it moves and sustain above 8830 for some time with a stop loss of below 8785. However looking at the volatility the market is witnessing, I once again advise traders to be extremely cautious in their trades.

Remark: - The overall technical setup is good but the volatility is still a concern therefore long call seems risky, however it can be tried as suggested above but with extreme caution because moving up the range of 8830---8931 will pose very stiff resistance and volatility could end the up move abruptly also.

 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.