CNX-NIFTY- A TECHNICAL VIEW -16-2-2017

CNX-NIFTY

Open-8778.95—High-8807.90---Low—8712.85—Close—8724.70 on

15-2-2017

Support: -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: -8754/8757.60/8801.05/ 8826.90/8830/8844.80/8849.75/8874/8893.35/8913.45/8968.70/8996.60/9119.20.

As anticipated it corrected today and the sell call targets were achieved (see my post of 15-2-17). Please note that technical indicators have turned weak and clearly indicate that this down correction could continue further and it may come down in the range of 8560---8482 in coming days. Moving down it may find support at 8712.85/8672.70/8598.45/8537.50, but as long as it holds the level of 8482(it changes every day) there is no serious threat to the long term uptrend. Please note that today it broke its short term moving averages, recent bottom of 8768.80 on the line chart and recent bottom of 8715 on the bar chart therefore it has definitely turned sell on the rise market for the time being till it moves above 8827 and sustain.

Since it got into correction mode therefore long call should be completely avoided now  but can be tried on decline near or within the range of 8540---8482 but not below 8482 with a stop loss of below 8450. At this point of time it would be better to try sell call below 8720 with a stop loss of above 8745 or sell on the rise but not above 8827 with a stop loss of above 8850. The possible sell point on the rise could be at 8774/8802 & 8827.  

Remark: - It seems that it has certainly slipped into correction mode, therefore long call should be avoided till it moves above 8827 or if it gives visible indication of correction completion, but it can be tried on decline in suggested range. Short call seems a better option now and can safely be tried as suggested above.

 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.