A TECHNICAL VIEW ON CNX--NIFTY--24-7-2017

CNX-NIFTY

Open-9899.60—High-9924.70---Low—9838---Close—9915.25 on

21-7-2017

Major Support: - 9870/9838/9792.05/9778.85/9709.30/9700/9688/ 9657/9632.     

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

Range for the week starting from 24-7-17:--9928.20---9792.05.

Critical Point:-9870.

For-24-7-17 the support and resistance levels are given here-under:-

Support:-9870/9838/9792.05/9778.85.

Resistance:-9928.20/9959/9970—76/10015—43/10070.

It opened on a firm note and traded in a range above its critical point of 9870 for quite some time but later in the day it plunged down sharply breaking 9870 decisively and hit a low of 9838 and after some time it made a sharp recovery and made a high of 9924.70 before closing the day near the high at 9915.25.

It went near its all time high of 9928.20 in last three days but could not cross it; similarly it broke its critical point of 9870 during the day in last three days but managed to close above it and finally ended the week near the higher end of the weekly range. Therefore looking at last three days volatile movement it seems that still some more upside steam may be left in it before it tops out for the time being and start correcting. However I feel that even if it moves up there is not much room left for a big upside move and it could still be expected to top out at 9970/10043/10131 or around these levels (see my earlier post). It is important to mention here that if it fails to cross 9928.20 marks in next 2-3 days time then possibility of crossing this mark will recede but as long as it holds 9870 level chances of moving up will be alive. Please note that sustained break below 9870 on the closing basis may confirm that the top may be in place.  

For 24-7-17- Since it has closed near the higher end of the weekly range, therefore long trade should only be attempted if it moves and sustain above 9928.20 for some time with a stop loss of  below 9870 for a target of 9959/9970—76/10015. Avoid long trade on decline for the day. Please note that in last few minutes before close, if you feel that it can close below 9910 then buying put option of 9900 is suggested with a stop loss of above 9930 or if it closes near or below 9870 then buy put option of 9850 with a stop loss of  above 9920.

Remark: - The trend is up as of now. But looking at last few days movement it seems that it hangs in balance and critically poised, so it can move either way from here therefore long call should only be attempted if it moves and sustain above 9928.20 for some time, else avoid.

 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.