CNX-NIFTY- A TECHNICAL VIEW -7-2-2017

CNX-NIFTY

Open-8785.45—High-8814.10---Low—8770.20—Close—8801.05 on

6-2-2017

Support: - 8800.65/8757.60/8736.95/8672.70/8641/8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

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

It is showing tremendous strength and it opened today with an up gap at 8785.45 within the resistance range of 8782—8821(see my post of 6-2-17) and thereafter moved up further and made a high of 8814.10 which was quite near to the upper end of the resistance range for the day (see my post for 6-2-17)but could not cross it and as expected it retreated back from  there for a while and made a low of 8770.20 but firmed up later to close almost near the high of the day. Please note that since it gave upside breakout from the weekly range of 8757.60----8672.70(see my post of 6-2-17), therefore as long as it holds the level of 8757.60 there is no potential threat of deep correction, short correction may happen anytime. But technically there is always a possibility that it could attempt to fill the today’s gap in next 3-4 days and if it does then it could come down to 8748 level and in that case long trade can only be tried if it moves again above 8757.60 and sustain.

Although it is on the firm technical footing and there is no sign of weakness as yet and it is definitely buy on dip market now. But since we are just away by 300 odd points from its all time high therefore, it is suggested to be extremely cautious in your trade position henceforth, because moving up from here to the all time high of 9119.20 it will face huge hurdle on the way at 8830/8874/8940/8969/9050, therefore possibility of a down correction is always there at any point of time.      

Please note that the trading range for 7-2-2017 is between 8785.45---8757.60---8823---8866. Therefore the following trading strategy can be tried.

1. Long call can be tried above 8815 with a stop loss of below 8785 for a target of 8823/8830/8850/8874.

2. Long call can be tried on decline near but not below 8757.60 with a stop loss of below 8740.  

It would be relatively safe to try long call above 8815 which may please be noted.

Remark: - Technically it is on a sound footing and no doubt it is buy on dip market, as it will face stiff resistance moving up towards it all time high level of 9119.20, so be cautious in your trade positions because correction may creep in anytime. Therefore it would be safe to try long call above 8815 on 7-2-2017.  

 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.