AN OBSERVATION ON CNX-NIFTY--6-7-2017

CNX-NIFTY 

When I last wrote in the middle of February-2017 the Nifty was 8800 plus and from then on it has moved from strength to strength and hit a all time high of 9709.30 on 6-6-2017 and  closed at 9637.60 on 5-7-2017 which is just 70+ points below its all time high. After hitting an all time of 9709.30, in last one month it has been broadly moving in a range of 9550—9680 although it hit a low of 9448.75 on 30-6-2017.  Technically it is looking O.K. now but 9510 & 9415 are critical points and if it moves below 9510 and sustain then it could correct and break below 9415 could deepen the correction but to really turn it bad/bearish it has to move below 9119 & 8968 and sustain.

Since it is moving in a range of 9550—9680  and did not cross it all time high of 9709.30 in last one month, therefore either it could be a consolidation or distribution. Please note here that certain technical indicators are showing negative divergence on daily weekly chart which is concerning, therefore it seems that it could be a possible distribution and it could head downward in coming days, so be watchful in long trade now. In view of this it is suggested to take fresh long call only if it moves above 9709.30 and sustain or on decline near but not below 9550 with a stop loss of below 9500; looking at the overall setup short call can be tried here or on the rise but not above 9709.30 with a stop loss of above 9720. It would be relatively safe to try long call above 9709.30. Please note that if it sustain above 9709.30 then it could hit 10043 mark similarly if it moves below 9510 & 9415 and sustain then it could hit 9150—9100 range.

Remark: - In view of the above observation long trade should only be attempted if it moves and sustain above 9709.30 or on decline near 9550, instead short call can be tried now or on the rise 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.