A TECHNICAL VIEW ON CNX--NIFTY---31-7-2017

CNX-NIFTY

Open-9996.55—High-10026.05---Low—9944.50---Close—10014.50 on

28-7-2017

Major Support: -9970/9944/9919.60/9870/9838/9928.20/9792.05/9778.85/9709.30.                                                                                                                            

Major Resistance: -10043.60/10072/10131/101  62/10369.

Critical Point:-9870 & 9970.

For-31-7-17 the intra-day support and resistance levels are given here-under:-

Support: - 9991.84/9970/9953.85/9928.20/9915.85/9870/9857.25/9838/9792.05/9778.85.

Resistance: - 10038.85/10043.60/10072/10092/10114.85/10131.

It opened with a down gap today at 9996.55 and went down further and hit a low of 9944.50 then in late hour it recovered smartly and filled the gap and at one point came into positive territory but eventually closed at 10014.50 with a meager loss of 6.04 points. It is important to mention here that yesterday it opened with an up gap and today with a down gap, please note that the gap up & gap down open near the top end is a distinct indication of topping out. But since the overall technical setup looks o.k. now, therefore it has to be seen over next 2-3 trading session whether it crosses its critical range of 10043.60—10131(see my post for 28.7.17) and sustain, if it does then the up move may continue, else top may already be in place at 10114.85 for the time being and it should start to correct before the further up move. In view of the above observation, it is suggested to be extremely vigilant and cautious in long trade commitments.

  

TRADING STRATAGY FOR-31.7.2017

1. Long can be tried if it moves and sustain above 10027 with a stop loss of below 9990.

2.  It would be relatively safe to try long call if it moves and sustain above 10043.60 with a stop loss of below 9990 for a target of 10072/10115.

3. Safe traders should avoid buy on decline strategy for the day, however aggressive trader can still try long call on decline near but not below 9970 with a stop loss of below 9940.

Remark: - The trend is up as of now. But Long call can only be tried if it moves and sustain above 10043.60 for some time.

 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.