CNX-NIFTY- A TECHNICAL VIEW -8-2-2017

CNX-NIFTY

Open-8805.70—High-8809.30---Low—8741.05—Close—8768.30 on

7-2-2017

Support: - 8757.60/8740.95/8672.70/8641/8598.45/8564/8555/8518/8506/8493.95/8476.70/8461.05/8460.30/8400/8373/ 8327/8293.80/8274.95/8223/8210.10/8185/8063.

Resistance: -8801.05/8830/8844.80/8849.75/8874/8893.35/8913.45/8968.70/8996.60/9119.20.

It corrected today and also filled the gap it created on 6-2-2017 and closed above the upper end of the weekly range i.e.8757.60 which is good. The overall technical setup is showing strength but it made lower high and lower low today which is slightly concerning and if moves below 8740.95 and sustain then it may correct further before moving up again. Please note that it may regain the up momentum above 8815. In view of today’s movement chances of correcting further looks quite possible and in that case it will find good support at 8757.60/8672.70/8537.50. It is therefore suggested that it would be safe to try long call above 8815 on 8-2-2017 with a stop loss of below 8785; however aggressive trader can also try long call above 8786 with a stop loss of below 8740 or else try near but not below the support points mentioned above with a self defined short stop losses because it is difficult to know that how correction will culminate.

Remark: - Technically it is o.k. but looking at today’s movement it seems that it could correct further before moving up again, therefore it would be safe to try long call above 8815 on 8-2-2017.  

 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.