A TECHNICAL VIEW ON CNX--NIFTY---17-7-2017

CNX-NIFTY

Open-9913.30—High-9913.30---Low—9845.45---Close—9886.35 on

14-7-2017

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

Resistance: -9970/ 10043/10131.

I had narrated my viewpoint in my post of 14-7-2017 that how the nifty may pan out in the coming week starting from 17-7-2017, I strongly feel that Nifty may top out during the week and start correcting. The possible top out points could be at 9970/10043/10131 or around these levels. Since it is not far away from these levels therefore, it is suggested to be extremely vigilant and cautious in your long trade’s commitments. It is important to mention here that if it moves beyond 10131 and sustain then the opinion has to be re-looked into. Similarly it tops out and start correcting then first major support point would be in the range of 9709.30—9688 and then at 9560 & 9448.75 and fall may accelerate once it breaks and sustain below 9448.75. Please note that since the rise has been vertical from the bottom of 9448.75 till now fall could be vertical and sharp too.

It opened with an up gap again today and made a new all time high of 9913.30 but slipped down in minutes and filled the gap for the day, then it broke its most important point of 9870 and went down to cover the gap it created on 13-7-17 but could not fill it completely (gap point is 9824.95), so that the gap still exist and it could still come to 9824.95 point but finally it closed above its critical point of 9870 for the day. Please note that as long as it holds 9870 on the closing basis it could hit the targeted top out points.

In view of the above observation long trade can be tried now or near but not below 9870 with a stop loss of below 9810 but it would accelerate only if it crosses 9913.30 mark and sustain. The possible upside target on 17-7-17 could be 9313.30/9921/9970. I once again repeat that long trade should be handled with extreme caution and care.

Remark: - Technically it is looking O.K. but as I anticipate that it could top out in the coming week therefore, I would personally avoid fresh long commitments during the week 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.