A TECHNICAL VIEW ON CNX--NIFTY--21-7-2017

CNX-NIFTY

Open-9920.20—High-9922.55---Low—9863.45---Close—9873.30 on

20-7-2017

Support: - 9870/9845/9792.05/9778.85/9709.30/9700/9698/ 9657/9632.        

Resistance: -9922.55/9928.20/9970/ 10043/10131.

It opened with an up gap at 9920.20 and made a high of 9922.55 for the day but filled the gap immediately and then it slipped down and went below its benchmark point of 9870 and did whip saw movement several times during the day around this mark, but at the end of the day it just managed to close above it at 9873.30. Please note that after coming so close to its all time high of 9928.20 it could not cross it, furthermore it closed just above its critical point of 9870 after breaking it several times intra-day which indicates weakness, however since it is above 9870 and if it holds this level on the closing basis then it can still make an attempt to move up and hit the expected top out points of 9970/10043 &10131( see my earlier post). But looking at today’s movement chances of it looks slightly slim.   

For 21-7-2017 trying long trade below 9928.20 is not suggested, however aggressive trader who wish to take chances can try long trade above 9870 with a stop loss of below 9845 but it may be a risky proposition .I once again reiterate that no fresh long call should be attempted below 9870. Instead short call can be tried if it sustains below 9870 with a stop loss of above 9930 for a target of 9845/9792.05/9778.85. It could be a risky trade but worth trying.

The daily support and resistance levels are given here under:-

Support:--9870/9863/9845/9792.05.

Resistance:-9895/9922.55/9928.20/9945/9970.    

The aforesaid support and resistance levels can be used as entry, exit and trailing stop loss points which can help you to manage your trade in a better and efficient manner. 

Remark: - The trend is up as of now. But today’s movement indicates some weakness, therefore long call should only be attempted if it moves and sustain above 9928.20. Short call can be tried 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.