CNX-NIFTY- A TECHNICAL VIEW -20-2-2017

CNX-NIFTY

Open-8883.75—High-8896.45---Low—8804.25—Close—88821.70 on

17-2-2017

Support: -8804.25----8783.95/8754/8712.85/8672.70/8641/8598.45/8564/8555/8537.50/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: - 8826.90/8830/8844.80/8849.75/8874/8893.35/8896.45/8913.45/8968.70/8996.60/9119.20.

Despite giving weak signal on 15-2-17 it was firm on 16-2-17 and on 17-2-17 it opened with a huge up gap at 8883.75 and hit a high of 8896.45 for the day but could not sustain at the upper level and slipped down but finally ended the day with a gain of 43.70 points. It did cross both the critical point of 8830 & 8874 intraday but could not close above it, secondly the gap it created today is still there and if it tries to fill the gap in next 3-4 days time, which is technically possible then it could come down to 8783.95 level and finally the technical indicators are still weak therefore in spite of strong move today it could still slip down from here and may come down to the level of 8560---8490 provided it fails to close above 8830 & 8874 levels and sustain in next couple of days. I once again reiterate that market is volatile and volatility is not good for a steady market, furthermore moving up it will face stiff resistance in the range of 8830---8897---8969---9050 so the up journey may not be smooth from here . It is therefore suggested to be extremely cautious in your trade positions at this point of time.   

In view of the above observation long call can be tried if it moves and sustain above 8830 with a stop loss of below 8800 for a target of 8844/8850/8874 /8931/8969.

Remark: - It is witnessing huge volatility which is a concern for a steady up move and technical indicators are also weak, therefore despite strong close it could still slip down from here. It is therefore suggested that long call can be tried as suggested above but with extreme caution.

 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.