A TECHNICAL VIEW ON CNX--NIFTY---3-8-2017

CNX-NIFTY-FOR-3-8-2017

Open-10136.30—High-10137.85---Low—10054.20---Close—10081.50 on 2-8-2017

Major Support: -10043.60/10038.85/9970/9944/9919.60/9870/9838/9928.20/9792.05/9778.85/9709.30.                                                                                                                            

Major Resistance: -10114.85/10131/10162/10369.

Critical Point:-9870 & 9970.

For-3-8-17 the intra-day support and resistance levels are given here-under:-

Support: -10043.60/10038.85/9970/9944/9928.20/9919.60/9870/9857.25/9838/9792.05/9778.85.

Resistance: - 10114.85/10131/10138/10157/10228/10295.

It opened with an up gap and above its critical point of 10131 but could not sustain and immediately slipped down below it and its weekly & monthly high of 10114.85. Furthermore it traded in negative territory most of the time during the day and after the R.B.I credit policy announcement it plunged down further and made a low of 10054.20 then recovered to close the day with a loss of 33.15 points at 10081.50. The overall technical setup is still o.k. but today’s move indicates slight weakness so it seems that the decline may continue if it fails to hold the range of 10043.60—10038.85. Going down it will find support at 10014.50/9970/9944.50 and sustained break below 9944.50 on the closing basis can take it down for deeper correction. Although it is not showing any potential sign of weakness as of now but in view of today’s movement chances are that it may decline further from here, therefore it is suggested to avoid buy on decline strategy for the day and try long call only if it moves and sustain above 10114.85 for some time.   Although there is no clear indication of trying short call now but again in light of days movement contrarian short call could be worth trying as suggested here under :-

TRADING STRATAGY FOR-3.8.2017

1. Long call can be tried if it maintains above 10114.85 with a stop loss of below 10038 for a target of 10131/10157/10228.

2. Contrarian short call can be tried below 10038.85 with a stop loss of above 10085 for a target of 10014/9970/9944.50.

3. If it fails to cross the level of 10114.85 in first 2 hours of trade then short call can be tried on the rise but below 10114.85 with a stop loss of above 10157.Please note that it could be a risky trade and stop loss may be triggered but worth trying.

Remark: - The trend is up as of now. But today’s move showed some weakness therefore it may decline further, so long call can only be tried if it moves and maintain above 10114.85 for some time. Short call can also be attempted 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.