Saturday, 26 August 2017

A TECHNICAL VIEW ON CNX---NIFTY---28-8-2017



 CNX-NIFTY

Open-9881.20—High-9881.50---Low—9848.85---Close—9857.05 on 24-8-2017

Major Support: -9838/9792.05/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    
Major Resistance: -9884.55/9947.75/9970/9988.35/10031/10048/10088.10/10114.85/10131/10137.85.

Critical Point:-9870 & 9970.

For-28-8-17 the intra-day short support and resistance levels are given here-under:-

Support: -9856—48/9819/9804/9790/9740/44/9928.20/9912/9870/9857.25/9838/9792.05/9778.85.

Resistance: - 9870—75/9899/9907--9927/9947.80/9970/9988.35/10031/10048.10088.10/10114.85/10131/10138.


It has been moving up for last 3 days but within the last big down bar which it made on 21.8.2017( bar High—9884.35 & Low-9740.10) It went near the high of the bar but could not cross it, which shows lack of strength. However since it has made higher bottom at 9740.10 and if it crosses the high of the last down bar i.e. 9884.35 it could move further and may make an attempt to cross the previous top of 9947.80 to make higher top. But doing so, it will face resistance at 9899/9907 & 9931. But once its crosses 9947.80 and sustain then the up move may be extended. Moving up further it would face strong resistance at 9965.04/9970/10031&10048 and it could only regain up momentum if it gives sustained close above 10048. Similarly moving down it will find support at 9843/9818/9792/9783.65/9740.10.

In view of the above observation the trading range for 28.8.17 is between 9947.80---9848 and moving up it will face resistance at 9884.35---9907---9931. So trying long call before it crosses 9947.80 could be a risky proposition. But since it made a higher bottom, therefore those who wish to try long call can try above 9858 with a stop loss of below 9819, but it would be relatively safe to try long call if it moves and sustain above 9884.35 with a stop loss of below 9843.

I once again reiterate (see my post of 22.8.17) that the technical indicators still indicates that it is most likely to drift down and break 9448.75level in coming days, however to move otherwise it has to go beyond 9970 and then 10048 and sustain on the closing basis. The pullback is on but the bias is on the downside as of now, so for safe trader it would be better to avoid long call.


Remark: - It seems that it has certainly topped out for now, but since it has made a higher bottom and the pullback rally is on and may be extended . Therefore aggressive trader can try long call as suggested above. But I caution that these relief rally can fizzle out abruptly also,therefore instead of taking advantage of the pullback rally look for an opportunity  to sell on the rise at appropriate points(strong resistance points could be the potential sell points-see resistance points mentioned above) or sell below the critical points till it gives sign of  complete bottoming out, which looks reasonably away at this point of 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.


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.




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Thank you for sharing your views.