CNX-NIFTY- A TECHNICAL VIEW -6-2-2017

CNX-NIFTY

Open-8735.15—High-8748.25---Low—8707.75—Close—8740.95 on

3-2-2017

Support:- 8736.95/8672.70/8641/8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: -8757.60/8800.65/8806.95/8844.80/8849.75/8893.35/8913.45/8968.70/8996.60/9119.20.

It is showing good strength and it has ended the week near the high of the week, which is a good sign. The important range for the coming week starting from 6-2-2017 is between 8757.60----8672.70 and then from 8640---8530. It is therefore suggested to try long call above 8757.60 with a stop loss of below 8725 for a target of 8782/8820/8850/8874 or buy on decline near but not below 8708 and then finally near but not below 8672.70 with a stop loss of below 8672 & 8640 respectively. It would be better and safe to try long call above 8758 on 6-2-2017. Please note that sustained break below 8640 will signal that this rally may end and break below 8530 will confirm the end of the on-going rally and then it may slip into deep correction. Therefore long call should be avoided below 8672.70 and below 8640 for sure.

It is important to mention here that for 6-2-2017 moving up the range of 8782---8821 may pose stiff resistance and if it does not get past this range then it could retreat from here, so be alert and watchful in your trade positions around this range.  

Remark: - Technically it is on a sound footing and no doubt it is buy on dip market, but at this juncture it looks critical and will face lot of hurdles moving up, so be cautious in your trade positions. It is therefore suggested to try long call only above 8758 and avoid buy on decline on 6-2-2017.

 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.