Commodities

Tuesday, 7 November 2017

A TECHNICAL VIEW ON CNX--NIFTY--8-11-2017



 CNX-NIFTY

Open-10477.17—High-10485.75---Low—10340.80---Close—10350.15 on 7-11-2017

Major Support: 10323.05/10251.85/10226.15/10178.95/10137.85/10124.50/10123.35/10080.67/10062.97/9992---9988/9970/9955-28/9870—50/9792-88/9740/9709.30/9700/9688/9687.55/9685.55

 Major Resistance: 10384.50/10390.35/10423.80/10431.75/10441/10452.50/10459.76/10461.70/10482.63/10490.45/10536.52/ 10578/10667.67/10707.88.
                                                                                                                                                                                                                              
For-8-11-17 the intra-day short support and resistance levels are given here-under:-

Support: -10337.51/10323.05/10251.85/10226.15/10178.95/10137.85/10124.50/10123.35/10080.67/10062.97/10043---015/9992--88.                                                                                                               

Resistance: 10374.58/10384.50/10390.35/10423.80/10431.75/10441/10452.50/10459.76/10461.70/10482.63/10490.45/10536.52/ 10540/10578/10667.67/10707.88.

It opened on firm note but could not cross its previous day’s high of 10490.45 and broke previous day’s low, furthermore it also broke two layer of its three layered strong support range and now very near to the last layer support therefore now it has become support and resistance range and placed at  10337.51---10374.58---10415.15 for 8-11-17. It also broke its rising trend line, its regression channel support line,  its recent bottom on the line chart at 10423.80 and one of the key support point of 10384.50 decisively and closed the day below all the recent important parameters with a loss of 101.65 points, which is a bad sign. As apprehended (see my post of 7-11-17) the correction has begun and it may last for few days and its intensity could be moderate to sharp therefore it has to be seen on the daily basis that how it is finally going to culminate. Please note that if it breaks and sustain below 10323.60 on the closing basis then the fall may pick up momentum and going down it may find support at 10306.90/10263.58/10251.85/10209.98/10196.77 and there is possibility that it may bounce back from any of these points. But the key support points are 10178.95/10137.85/10123.35 and sustained break below 10123.35 may accelerate the fall. It is therefore suggested to avoid long trade till the fall is arrested and it shows visible sign of correction completion.

In view of the above observation safe trader should try long trade only if it moves and closes above 10452 or after the fall is arrested and it starts moving up again, but aggressive traders if they wish to can try long trade on dip based on support points and key support points mentioned above with short stop losses. Although there is no clear indication of initiating a short trade now, but today’s fall indicate that correction has begun and it may last for few day. Therefore for taking advantage of this correction short trade can be tried if it breaks 10323 with a stop loss of above 10391 or on the rise in the range of 10423---10440 with a stop loss of above 10465.     

 Remark: - The trend is up but as anticipated it corrected today and that too sharply therefore it seems that the correction may last for couple of days, so long trade should be avoided now and can only be tried above 10452 or after the fall is arrested and it show sign of moving up again. Instead short trade can be tried now 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.




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