Wednesday, 13 December 2017

A TECHNICAL VIEW ON CNX---NIFTY--14-12-2017

 CNX-NIFTY

Open-10236.60—High-10296.55---Low—10169.85---Close—10192.95 on 13-12-2017

Support: 10182/10178.95/10137.85/10118.05/10108.15/1010310094/10043.65/10033.35/9955/9943.

Resistance:10216.18/ 10251/10259.37/ 10271/10315/10321/10335/10384.50/10400/10409.55/10411.16/10451.65/10453/10461.70/10485.75/10490.45/10536.52/10590.15.                                                                                                                                                                                                                    
For-14-12-17 the intra-day short support and resistance levels are given here-under:-

Support: -10182/10178.95/10162/10137.85/10118.05/10108.15/10103/10008/10094/10043.65/10033.35/9955/9943.
                                                                                                           
Resistance: 10202/10216.18/10223/10237/ 10251/10259.37/ 10271/10315/10321/10335/10384.50/10400/10409.55/10411.16/10451.65/10453/10461.70/10485.75/10490.45/10536.52/10590.15.

It opened on a flat note and had both way swing during the day but eventually closed with a loss of 47.20 points. It  broke all its short term moving averages today except for one which is at 10182(it changes every day) and medium term moving average are placed in the range of 10162—10097(it changes every day) for the day. Moving down other support points would be 10146—10103/10094—92/10033.35/10008. So it has good support area in the range of 10162—10092 and then 10033.35---10008 and 10008(it changes every day) would be the last bounce back point because sustained break below it on the closing basis could pose a potential threat to the on-going uptrend. Similarly moving up it will face resistance from its short term moving averages which are placed in the range of 10202---10259 for the day and other important resistance point would be 10216.18/10265.84/10321/10335 and it is needless to mention here that the range of 10400---10490.45 would be the very tough range to cross (see my earlier post). So the continuation of smooth up move from here seems difficult, furthermore the technical setup has weakened and the bias is on the downside now and if it does not give a sharp recovery shortly then the down move could deepen. Therefore it is advised that long trade should be avoided till it gives visible sign of correction completion.  

In view of the above observation safe trader should avoid long trade now, however aggressive trader can try long trade on decline near but not below 10094 with a short stop loss of below 10080 and then in or around the range of 10033—10008 but not below 10008 with a stop loss of below 9965. In light of two day fall and anticipating further fall from here short call could be a better option and can be tried on the rise near but not above 10259 with a stop loss of above 10297 or sell if it sustain below 10162 with a stop loss of above 10205.

Remark: - The long term trend is still up. But it is correcting now, so long trade should be avoided now and can only be tried as suggested above. It would be relatively safe to try long trade in the range of 10033—10008. Short trade seems a better option now and could be worth trying as mentioned 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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