CNX-NIFTY- A TECHNICAL VIEW -3-2-2017

CNX-NIFTY

Open-8724.75—High-8757.60---Low—8685.80—Close—8734.25 on

3-2-2017

Support:-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: -8736.95/8745.80/8800.65/8806.95/8844.80/8849.75/8893.35/8913.45/8968.70/8996.60/9119.20.

It moved up sharply after the presentation of the Union Budget-2017-18 on 1-2-17 and today also it consolidated and closed with a meager gain of 17.84 points. It is showing tremendous strength and is still buy on dip market but alertness is required at this juncture as the following range is very important and crucial to keep the up momentum going.

MOVING UP

1.8672.70----8754

2. 8830------8874.

Please note that it has to move above 8754 and sustain on the closing basis to keep the on-going up momentum intact and finally it has to move above 8874 and sustain then it may hit a new all time high also but attempting that it will face hurdles at 8940 / 8969 & 9040 points too. So the up journey may not be smooth from here and it may exhaust also at any of these points, so be watchful and alert and plan your trade keeping the above range and stiff resistance thereafter in mind.  

MOVING DOWN

1.8655----8537.50

Please note that sustained close below 8672.70 and then break below 8655 can put it in a corrective mode and break below 8537 may accelerate the down correction. Please note that the long term uptrend will only be threatened if it breaks its long term moving average range which is between 8447—8253(it changes every day).

In view of the above observation long can be tried within the range of 8672.70---8754 or above 8754 but not below 8672 with a stop loss of below 8650 or after a reasonable decline near 8537 and then near 8450 but not below it with a stop loss of below 8400. It is not the market for short call now but it can be attempted if it move and sustain below 8650 with a stop loss of above 8680 for taking advantage of corrective move.

Remark: - Technically it is on a good footing and no doubt it is buy on dip market, but at this juncture it is critical and seems evenly poised with a slight upward bias. Therefore long call can only be tried near 8672.70 or above 8754 but not below 8672.70 for sure. Short call can also be attempted as suggested above. It could be a risky trade but worth trying.

 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.