A TECHNICALL VIEW ON CNX--NIFTY--5-2-2018

CNX-NIFTY---5-2-2018

Open-10938.20—High-10954.95---Low—10736.10---Close—10760.60 on 2-2-2018

Support: 10666.75/10592.70/10552.40/10530.70/10404.65.

Resistance: 10782.65/10878.09/ 11109.20/11044.55/11110.10/11121.10/11171.55.

For-5-2-2018 the intra-day short support and resistance levels are given here-under:-

Support: - 10733/10685/10585/10552/10530/10404.                                                                                                          

Resistance: 10780/10851/10944/10997/11009.20.

Further to my last post of 29-1-2017, as envisaged, it got into correction mode from the expected range of 11165—225. The on-going correction may possibly culminate at 10697/10585/10552/10530 levels but if it breaks and sustain below 10530 level on the closing basis then the uptrend may lose its steam. Please note that its sharp fall today indicate that the fall may continue for some time therefore not to take long call in a hurry and let the fall be arrested first and it shows sign of moving up then only try it otherwise you may be trapped in long trade, however long call can be attempted by the aggressive trader in the range of 10552—530 with a strict stop loss of below 10500.  

Technical setup has weakened a bit as it has broken short term moving averages, furthermore the technical indicator are showing huge negative divergence on daily and weekly chart which indicate moderate to sharp fall may be ahead in coming days. Therefore safe trader should avoid long call till the fall is arrested and it shows visible sign of correction completion. Since it is in correction mode so short call seems a better option now and can be tried below 10736 with a stop loss of above 10770 for a target of 10697/10585/10552/10530 or on the rise near but not above 10870—90 with a stop loss of above 10940 for the day. Looking at today’s fall it seems that the on-going down correction could be painful this time.

Remark: - The long term trend is still up. But since it has gotten into correction mode long trade should be completely avoided till it shows sign of recovery, because today’s fall seems to be an impulse down move and if it is so then this down move could be severe and painful.

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.