CNX-NIFTY---29-1-2018
Open-11095.60—High-11095.60---Low—11009.20---Close—11069.65
on 25-1-2018
Support: 11005/10940/10881.40/10782.65/10755/10666.75/10552.40/10530.70.
Resistance: 11110--120/11160—175/11220---250/11500+
For-29-1-2018 the
intra-day short support and resistance levels are given here-under:-
Support: - 11005/10959/10940/10909/10881.40/
Resistance: 11110--20/11160—175/11200/11220---250
Further to my last post of 14-12-2017, it did not break the last
support range of 10033.35---10008 and bounced back from 10074.80 and then went
on to cross the tough resistance range of 10400—490.45 (see my post of
14-12-2017) and thereafter it moved from
strength to strength and hit a new high of 11110.10 on 24-1-18. The chart setup
is good and it is in strong up move but certain technical indicators suggest
that it is in overbought zone, furthermore is has been rising unabated for last
8 weeks which is a Fibonacci number also and if it moves up further there is a
strong resistance zone in the range of 11115---11165—11225, therefore there is
a strong possibility that it may correct from here or may be after moving up little
further from here, but the correction looks imminent in next1-2 weeks time.
Please note that if it moves above 11225--250 and sustain then it may race up
to 11500+ levels.
It is important to mention here that the Union Budget will be
presented during the next week; it is therefore suggested to keep your trading
commitment light and one should be extremely cautious and careful in the trade
because it may witness huge volatility on either side in coming week and may
trap the traders on wrong foot. In all likelihood there is a good possibility
that the correction may be triggered soon after the Budget.
For traders the broad range for the week starting from 29-1-18
would be between 11110---10880 and the range for the day would be between
11110---11005. Long trade can be tried if it moves and sustain above 11110 for
some time with a stop loss of below 11060 or on decline near but not below
11005 with a stop loss of below 10950. I once again reiterate that in view of
the ensuing Union Budget there could be extreme volatility both ways so trade
should be handled with utmost alertness. Although there is no sign as yet to go
short in it but short trade can be tried amid expected volatility. If it fails
to move above 11110.10 for some time then try short trade near 11110 with a
stop loss of above 11125 or on the rise and in the range of 11165—11225 with a
stop loss of above 11250,it could be a risky trade but worth trying. The
overall bias is up.
Last but not the least as long as it holds the range of
10552---10530 on the closing basis there is no threat to the uptrend. Therefore
long trade can be tried on sharp decline at the appropriate levels till it
holds the above range.
Remark: - The long term trend is up. But in view of vertical rise the
possibility of correction is also pretty bright, however long trade can still
be tried as suggested above but with utmost caution. The contrarian trader can
try short trade if price movement permits.
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.
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