A TECHNICAL VIEW ON CNX--NIFTY---14-7-2017

CNX-NIFTY

Open-9855.80—High-9897---Low—9853.45---Close—9891.70 on

13-7-2017

Support: - 9870/9778.85/9709.30/9700/9698/ 9657/9632.                       

Resistance: -9938/9970/ 10043/10131.

As shown by SGX—Nifty yesterday morning, it opened with an up gap on 13-7-17 and closed near the high of the day, it behaved the way it was expected too (see my post for 13-7-17), but the concerning thing is that the gap it created today is still there and if it attempts to fill the gap in next 3-4 trading session, which is technically possible then it can come down to 9824.95 level. Furthermore the gap up opening and unfilled gap at the top end of the market is very dangerous and is an indication of topping out. However this robust gap up opening and further up move may last for few more days before it finally tops out for the time being and start to correct. Moving up it will face stiff resistance at 9970/10043/10131 and these could be the potential top out points also and it may possibly top out during the next week starting from 17-7-2017. Since it is vertically moving up from the bottom of 9448.75, so once it tops out then the fall could be vertical too which may please be noted. It is therefore suggested that one should be highly alert and cautious in the long trades today and during next week.    

Please note that now the important range for it is between 9870---9709 therefore it is suggested to try long call only above 9870 from now with a stop loss of below 9820 or on decline near 9740—7909 but not below 9709 with a stop loss of below 9680. The upside target for 14-7-17 could be 9940/9970. It is important to note here that it is only 240 points away from the expected highest top out point of 10131 but it may top out earlier also therefore, I once again reiterate that one should be extremely vigilant and cautious in long trade now and during coming week.

Remark: - Technically it is looking good but in view of the above observation I would personally avoid long call for next few days instead look for an opportunity to try short call.

 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.