Saturday, 23 September 2017

A TECHNICAL VIEW ON CNX--NIFTY--25-9-2017



 CNX-NIFTY---25-9-2017

Open-10094.35—High-10095.05---Low—9952.80---Close—9964.40 on 22-9-2017

Major Support: -9947.80/9870/9850/9838/9792.05/9783.75/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    
Major Resistance: -9970/9988.40/10031/10048/10088.10/10114.85/10131.95/10137.85/10178.95.

Critical Point:-9870 & 9970.

For-25-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -9955—9907/9883—9850/9803/9784.

Resistance: -9988.40/10031/10048/10062—10092.


Further to my last post of 11-9-2017 the way it was moving, it did not seemed that it would make a new high, but it did and also closed above the previous high of 10137.85 for three consecutive days then went in for correction. Today it had a massive down move and it broke some of its most important levels  and its short term moving averages also therefore it seems that the on-going down move may continue till it bounce back above its short term averages and important points which are placed in the range of  9970---10062. Moving down it may find support at 9932---9907/9874/9850/9801—9784 and it is possible that it may bounce back from or around any of these points and may resume the up move again. But in case it fails to bounce back then the correction may deepen and the threat points would be break and sustained close below 9850 and then below 9784. But not to forget that it has bed of supports in the range of 9740---9709---9685(see my post of 11-9-2017), so the real breakdown can only happen if it breaks and sustain below 9685 on the closing basis.

 It is in corrective mode now but it can witness in between short up move during the correction. Therefore those who want to take advantage of these short up moves can try long call above 9992 with a stop loss of below 9950, but it would be better and relatively safe to attempt long call if it moves and sustain above 10062. Avoid long call completely for the week starting from 25-9-2017 if it slips below 9950 and sustain and try it only on the decline near the important support points mentioned above with proper stop losses. In fact it is suggested to try short call if it slips below 9950 with a stop loss of above 9992.

I once again reiterate that on the weekly chart strong negative divergence in RSI still persist and MACD is also in the sell mode, so if the correction continues for some time then it may drift on the downside and may hit 9525/9448 or lower levels in coming days/ weeks (see my post of 11-9-2017), therefore long trade should be handled with extreme caution and care.

Remark:-It seemed that it had topped out at 10137.85 but it made a new high of 10178.95 and now it is in corrective mode and how this correction culminates has to be seen. But in view of negative divergence in RSI and MACD sell mode, it could still go down sharply if correction persists for some time. Therefore it is suggested to try long call only after the on-going fall is arrested and it starts looking up or take your trading call 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.


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.




No comments:

Post a Comment

Thank you for sharing your views.