A TECHNICAL VIEW ON CNX--NIFTY---12-2-2018

CNX-NIFTY---12-2-2018

Open-10416.50—High-10480.20---Low—10398.20---Close—10454.95 on 9-2-2018

Support: 10404.65/10398/10276/10251.65/10178.95/10137.85/10123.35/10094/10074/10033/9955.80.

Resistance: 10487.57/10530.70/10552.40/10592.70/10666.75/10782.65/10878.09/ 11109.20/11044.55/11110.10/11121.10/11171.55.

For-12-2-2018 the intra-day short support and resistance levels are given here-under:-

Support: - 10404.65/10398/10318/10309/10261/10231/10178--10094.        

                                                                                                  

Resistance:  10487.57/10530.70/10552.40/10592.70/10641-10666.75/10686/10742/10790/10825.

Further to my last post of 5.2.2018, as expected the correction deepened and it broke its most important range of 10552.40---10530(see my post of 5.2.2018) and whipsawed around it but finally ended the weak below the range ,which is not a good sign and if it sustains below it then it may move down further from here. But moving down it will get good support at 10398 & 10276 and then major support from its long term moving averages which are placed in the range of 10318---9998(it changes every day) for 12.2.2018. Kindly note that it is already weak but sustained close below 10530 for 4-5 days will indicate further weakness in it, break and sustained close below 10398 will indicate that it can get into deep correction mode and most importantly break and sustained close below its long term moving average range of 10318---9998(it changes every day) will pose potential threat to the long term uptrend. Similarly to reverse the downtrend it has to move above 10552.40 and sustain for 4-5 days on the closing basis then the up move may possibly resume.

The broad range for it is between 10552.40---10276---10000 and within this range it has bed of strong support in the range of 10178—10000 so breaking this range may not be easy. However the technical setup has weakened as it has broken its short and medium term moving averages, making lower top and bottom and furthermore the technical indicators are showing negative divergence on the daily and weekly chart which indicate further fall may be ahead and it may break 10000 levels in coming days/weeks provided it does not move above the range of 10552.40---10530 and sustain on the closing basis. The undertone is bearish as of now, but trader can attempt both side trades keeping the aforesaid broad range in mind. 

In view of the above observation, it is suggested to avoid long trade completely till it moves above 10552.40 and sustains for 4-5 days or it can be tried once the fall is arrested and it gives clear sign of correction completion. Since it is in corrective mode now so short trade seems a better option and can be tried on the rise at proper points, but be careful in your trade if it happens to close above 10552.40 and sustain.

Remark: - The long term trend is still up. But since it is in correction mode long trade should be completely avoided till it shows visible sign of recovery or it can be tried if it moves above 10552.40 and sustain for 4-5 days on the closing basis, till then short trade seems a better option.

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.