A TECHNICAL VIEW ON CNX---NIFTY--19-7-2017

CNX-NIFTY

Open-9832.70—High-9885---Low—9792.05---Close—9827.15 on

18-7-2017

Support: - 9824/9778.85/9709.30/9700/9698/ 9657/9632.                       

Resistance: -9870/9913.30/9928.20/9970/ 10043/10131.

It opened with a huge down gap at 9832.70 and hit a low of 9792.05 for the day, then recovered and it almost covered the gap it created but factually the gap still exist at 9894.70, so technically it may make an attempt to fill the gap in next 2-3 days time else it may not be filled  now. Finally it went down again and closed near the lower end of the day at 9827.15 which is a weak sign.

I expected it to move up in first 2-3 days of the week and to top out around 9970/10043/10131 levels (see my post of 14&17 July-17). But since it decisively broke its most critical level of 9870 today, which is a bad sign and if it does not bounce back above it in next 3-4 trading session and then crosses its recent all time high of 9928.20 then it can be assumed that a top is already in place for the time being and correction should continue. It is therefore suggested to avoid long call till it moves above 9870 and sustain on the closing basis, instead short call can be tried on the rise in the range of 9870--9908 with a stop loss of above 9930, it may be slightly risky trade but worth trying, which may please be noted.

For 19-7-17 it has minor support at 9824 and 9778 but the major support exist in the range of 9709.30---9700 and if it breaks this range and sustain below it on the closing basis then it will be sort of a confirmation that it may deeply correct from there. So if it sustain above 9824 then it may bounce back to the level of 9870—9895 else down move may continue. 

In view of the above observation it would be safe to try long call once it moves above 9870 and sustain on the closing basis or else try near the range of 9709.30---9700 with a stop loss of below 9680. The aggressive day trader who want to play for an expected pullback may try long call if it maintains above 9824 for some time with a stop loss of below 9770 but it could be a highly risk trade mind you. Instead short call can be tried as suggested above or if it moves below 9824 and sustain for some time with a stop loss of above 9845 for a target of 9792/9778/9709.

Remark: - The trend is up as of now but it corrected today and the closing was disturbing and pointing at that a top may already be in place at 9928.20 as envisaged in my earlier post. I would therefore avoid long call completely now instead try short call as suggested above.

 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.