A TECHNICAL VIEW ON CNX--BANK NIFTY---25-9-2017

CNX--BANK NIFTY

Open-24704.55--High-24709.70--Low-24340—Close-24368.85 on

 22-9-2017

MajorSupport:-24156--51/24103.30/23897.85/23852.65/23822.20/25523.65/23311.85.

MajorResistance: - 24455/24494.35/24496.20/24591.80/24651.05/24791.85/24924/24979.35/24994.30/25032/25105.35/25198.80

For-25-9-17 the intra-day short support and resistance levels are given here-under:-

Support:-24340--303/24193/24156---151/24103.30/24053/23897.85/23852.65.

Resistance: 24455/24496.20/24568---690.

Further to my last post of 11-9-2017. It did move above its important point of 24924 but could not cross its all time high of 25198.80 therefore top out conclusion still holds (see my post of 11-9-2017)  .It made a high of 25105.35 in this up move and then slipped and has been falling for last 4 days and today it had massive fall and it broke some of its most important levels  and its short term moving averages also therefore it seems that the on-going down move may continue till it bounce back above its short term averages and important points which are placed in the range of  24455---24690---24826. Moving down it may find support at 24312---24303/24193/24151—103/24078  and it is possible that it may bounce back from or around any of these points and may resume the up move again. But in case it fails to bounce back then the correction may deepen and the threat points would be break and sustained close below 24303 and then below 24078 . But not to forget that it has strong support in the range of 23897-----23822.20, (see my post of 11-9-2017), so the real breakdown can only happen if it breaks and sustain below 23822.20 on the closing basis.

 It is important to mention here that its relative strength is weak in comparison with Nifty therefore it may have deeper correction than Nifty. It is in corrective mode now but it can witness in between short up move during the correction. Therefore those who want to take advantage of these short up moves can try long call above 24455 with a stop loss of below 24340, but it would be better and relatively safe to attempt long call if it moves and sustain above 24555 for the day. Avoid long call completely for the week starting from 25-9-2017 if it slips below 24340 and sustain and try it only on the decline near the important support points mentioned above with proper stop losses. In fact it is suggested to try short call if it slips below 24340 and sustain for few minutes with a stop loss of above 24455.

I once again reiterate that on the weekly chart strong negative divergence in RSI still persist and MACD is also in the sell mode, so if the correction continues for some time then it may drift on the downside and may hit 23200 or lower levels in coming days/ weeks (see my post of 11-9-2017), therefore long trade should be handled with extreme caution and care.

  

Remark: - It still seems that it has topped out at 25198.80. Now it is in corrective mode and how this correction culminates has to be seen. But in view of negative divergence in RSI and MACD sell mode, it could still go down sharply if correction persists for some time. Therefore it is suggested to try long call only after the on-going fall is arrested and it starts looking up or take your trading call 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.

Note: Price stated here is of spot market.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

A TECHNICAL VIEW ON CNX--NIFTY--25-9-2017

 CNX-NIFTY---25-9-2017

Open-10094.35—High-10095.05---Low—9952.80---Close—9964.40 on 22-9-2017

Major Support: -9947.80/9870/9850/9838/9792.05/9783.75/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    

Major Resistance: -9970/9988.40/10031/10048/10088.10/10114.85/10131.95/10137.85/10178.95.

Critical Point:-9870 & 9970.

For-25-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -9955—9907/9883—9850/9803/9784.

Resistance: -9988.40/10031/10048/10062—10092.

Further to my last post of 11-9-2017 the way it was moving, it did not seemed that it would make a new high, but it did and also closed above the previous high of 10137.85 for three consecutive days then went in for correction. Today it had a massive down move and it broke some of its most important levels  and its short term moving averages also therefore it seems that the on-going down move may continue till it bounce back above its short term averages and important points which are placed in the range of  9970---10062. Moving down it may find support at 9932---9907/9874/9850/9801—9784 and it is possible that it may bounce back from or around any of these points and may resume the up move again. But in case it fails to bounce back then the correction may deepen and the threat points would be break and sustained close below 9850 and then below 9784. But not to forget that it has bed of supports in the range of 9740---9709---9685(see my post of 11-9-2017), so the real breakdown can only happen if it breaks and sustain below 9685 on the closing basis.

 It is in corrective mode now but it can witness in between short up move during the correction. Therefore those who want to take advantage of these short up moves can try long call above 9992 with a stop loss of below 9950, but it would be better and relatively safe to attempt long call if it moves and sustain above 10062. Avoid long call completely for the week starting from 25-9-2017 if it slips below 9950 and sustain and try it only on the decline near the important support points mentioned above with proper stop losses. In fact it is suggested to try short call if it slips below 9950 with a stop loss of above 9992.

I once again reiterate that on the weekly chart strong negative divergence in RSI still persist and MACD is also in the sell mode, so if the correction continues for some time then it may drift on the downside and may hit 9525/9448 or lower levels in coming days/ weeks (see my post of 11-9-2017), therefore long trade should be handled with extreme caution and care.

Remark:-It seemed that it had topped out at 10137.85 but it made a new high of 10178.95 and now it is in corrective mode and how this correction culminates has to be seen. But in view of negative divergence in RSI and MACD sell mode, it could still go down sharply if correction persists for some time. Therefore it is suggested to try long call only after the on-going fall is arrested and it starts looking up or take your trading call 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.

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.

A TECHNICAL VIEW ON CNX--BANK NIFTY---11-9-2017

CNX--BANK NIFTY

Open-24409.50--High-24419.25--Low-24273—Close-24370.80 on

 8-9-2017

MajorSupport:-24156--51/24103.30/23897.85/23852.65/23822.20/23708.65.

MajorResistance: - 24422.45/24494.35/24496.20/24591.80/24651.05/24979.35.

For-11-9-17 the intra-day short support and resistance levels are given here-under:-

Support:-24322---230/24156---151/24103.30/24053/23897.85/23852.65.

Resistance: 24422.45/24440/24455/24496.20/24591.80/24651.05/24979.35.

Further to my last post of 4-9-2017. It moved in an expected range of 24496.20---24103.30 (see my post of 4-9-2017) during the week ended on 8-9-2017. Although it made higher bottom during the week at 24151.10 but it is not making consistent higher top which is concerning. The trading range for the week starting from 11-9-2017 would be same as last week i.e. 24496.20---24103.30 with an alert point at 24151.10 for long trade. It is therefore suggested to try long call only if it moves above 24496.20 and sustain for some time with a stop loss of below 24370, avoid buy on decline strategy for now, however aggressive trader if they wish to can try long call near 24151 with a stop loss of below 24100 but it could be a risky bet mind you. Please note that the threat points for end of this rally would be break and sustained close below the important bottom of 24103.30. But even if it breaks 24103.30 level it has strong support in the range of 23897-----23822.20, so the real breakdown can only happen if it breaks and sustain below 23822.20,but one should be careful in long trade below its recent bottom of 24151.10 and its important bottom  of 24103.30(see my post of 4-9-2017).

It is very important to mention here that after making an all time high of 25198.80 it fell by more than 1375 points in just 7 days and made a bottom at 23822.20, it seemed to be an impulse down move. Thereafter it started moving up and in 4 days it made a lower top at 24496.20 and fell again to make bottom at 23852.65 and thereafter  12 days have already past but it has not been able to cross the recent top of 24496.20 even leave aside crossing it’s all time high of 25198.80. So this up move is not an impulse move in any case, had it been an impulse up move it would have crossed the all time high either in half the time or in equal time which it took to fall i.e. in 4 or 7 days. Therefore it is just a corrective up rally and may fizzle out any moment and then may starts to move down sharply or it can be said that by moving in a short range now it may be creating a classic bull trap and long trader may be caught unaware once the on-going up move end abruptly. But if in case it moves otherwise then it has strong resistance moving up at 24511/24673/24874/24924 and it has to move above 24924 and sustain on the closing basis, then only it may regain the up momentum and  could make an attempt to cross its previous all time high of 25198.80 but chances of happening this looks slim at this point of time(see my post of 4-9-2017).

Furthermore on the weekly chart there is the strong negative divergence in RSI and MACD is also in the sell mode, therefore as of now it indicates that it may drift on the downside and may hit 23200 or lower levels in coming days/ weeks, therefore long trade should be handled with extreme caution and care because this on-going up move is likely to end abruptly also and may trap the long trader unaware.  

Remark: - It has topped out at 25198.80 for sure as of now. In view of the above observation long can only be attempted if it sustains above 24511 but even then in view of the negative divergence in RSI and MACD in sell mode on the weekly chart, one should be extremely vigilant and cautious in the long trade.  I would personally prefer to avoid long call till it moves above 24924 and sustain or may try after a reasonable decline, instead I will look for an opportunity to go short now.

 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.

Note: Price stated here is of spot market.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

A TECHNICAL VIEW ON CNX--NIFTY---11-9-2017

 CNX-NIFTY

Open-9958.65—High-9963.60---Low—9913.30---Close—9934.80 on 8-9-2017

Major Support: -9882.55/9870/9850/9838/9792.05/9783.75/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    

Major Resistance: -9947.80/9964.85/9888.40/10031/10048/10088.10/10114.85/10131/10137.85.

Critical Point:-9870 & 9970.

For-11-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -9925—9900/9882—9850/9838/9803.

Resistance: - 9941/9947.80/9964.85/9988.40/10031/10048/10067—78/10088.10.

Further to my last post of 4-9-2017 it moved in a range, it did cross the recent high of 9983.45 for a while and made a little higher high at 9988.40 but could not sustain for a minute even and slipped, similarly it did not break the first threat point of 9850. So it moved in an expected range of 9983.45---9850 during the week ended on 8-9-17(see my post of 4.9.17).

It is still making higher bottoms and the last bottom is at 9882.55 but not making higher top consistently which is concerning. The trading range for the week starting from 11-9-2017 would be 10031--- 9988.40----9882.55---9850. It is therefore suggested to try long call only if it moves above 9988.40 and sustain for some time with a stop loss of below 9930, avoid buy on decline strategy for now, however aggressive trader if they wish to can try long call near 9882 with a stop loss of below 9850 but it could be a risky bet mind you. Please note that the threat points for the end of this rally would be break and sustained close below the recent bottom of 9882.55 and its important point of 9850. But even if it breaks 9850 level it has strong support in the range of 9740---9709---9685,so the real breakdown can only happen if it breaks and sustain below 9685,but one should be careful in long trade below its recent bottom of 9882.55 and critical point of 9870(see my post of 4-9-2017).

It is very important to mention here that after making an all time high of 10137.85 it fell by more than 450 points in just 8 days and made a bottom at 9685.55, it seemed to be an impulse down move. Thereafter it started moving up and 18 days have already past but it is way below its all time high of 10137.85 had it been an impulse up move it would have crossed the all time high either in half the time or in equal time which it took to fall i.e. in 4 or 8 days. Therefore it is just a corrective up rally and may fizzle out any moment and then may starts to move down sharply or it can be said that by moving in a short range now it may be creating a classic bull trap and long trader may be caught unaware once the on-going up move end abruptly. But if in case it moves otherwise then it has to move above 10048 and sustain on the closing basis, then it may regain the up momentum and  could make an attempt to cross its previous all time high of 10137.85 but chances of happening this looks slim at this point of time(see my post of 4-9-2017).

Furthermore on the weekly chart there is the strong negative divergence in RSI and MACD is also in the sell mode, therefore as of now it indicates that it may drift on the downside and may hit 9525/9448 or lower levels in coming days/ weeks, therefore long trade should be handled with extreme caution and care because this on-going up move is likely to end abruptly also and may trap the long trader unaware.   

Remark: - It has topped out at 10137.85 for sure as of now. In view of the above observation long can only be attempted if it sustains above 9988.40 but even then in view of the negative divergence in RSI and MACD in sell mode on the weekly chart, one should be extremely vigilant and cautious in the long trade.  I would personally prefer to avoid long call till it moves above 10048 and sustain or may try after a reasonable decline, instead I will look for an opportunity to go short now.

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.

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.

A TECHNICAL VIEW ON CNX---NIFTY---4-9-2017

 CNX-NIFTY---4-9-2017

Open-9937.65—High-9983.45---Low—9909.85---Close—9974.40 on 1-9-2017

Major Support: -9970--65/9947.80/9925.75/9911/9870/9850/9838/9792.05/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    

Major Resistance: -9883.45/10031/10048/10088.10/10114.85/10131/10137.85.

Critical Point:-9870 & 9970.

For-4-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -9970/9947.80/9909.85/9885.

Resistance: - 9983.45/10031/10048/10067—78/10088.10.

Further to my last post of 28-8-2017 it behaved in an expected manner and made further higher bottom and eventually crossed the top of 9947.80, therefore now it is making higher top & bottom and till it breaks its last bottom of 9783.75 this up rally may continue, even if it breaks the said bottom it has bed of strong support in the range of 9740---9709---9685,so the real breakdown can only happen if it breaks and sustain below 9685,but one should be careful in long trade below its critical point of 9970--65 & 9870. The threat points for end of this rally would be break below 9850 and sustained close below the recent bottom of 9783.75. Similarly moving up it will face resistance at 10031/10048 and it could only regain the up momentum and may make an attempt to cross its previous all time high of 10137.85 if it moves above 10048 and sustains on the closing basis else this rally may end at or  around any of the above mentioned points.

The trading range for 4-9-2017 would be 10048—10031---9984---9937.65---9912---9900. Since it is making higher top & bottom long call can be tried now or on decline for sure near support points in the said range but not below 9900 for the day. It closed near the high of the week, so instead of taking long call now it would be better and relatively safe to try long call if it moves above the weekly high of 9983.45 and sustain with a short stop loss of below 9937 but the authentic stop loss for all long trade would be below 9900 for the day.   

It is important to mention here that although it is making higher top and bottom on the daily chart and above its all short and long term moving averages. But not to forget that on the weekly chart the strong negative divergence in RSI is still intact and MACD is also in the sell mode, as of now it indicates that it may drift on the downside in coming days/ weeks,  therefore long trade should be handled with extreme caution and care because this on-going up move can end abruptly also and may trap the long trader unaware.   

Remark: - It still seems that it has topped out at 10137.85 on 2.8.2017 but since it is making higher top &bottom therefore the on-going up move may be extended a little further ,so long call can be tried as suggested above. But in view of the negative divergence in RSI and MACD in sell mode on the weekly chart, one should be extremely vigilant and cautious in the long trade. 

 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.

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.

A TECHNICAL VIEW ON CNX---BANK NIFTY----4-9-2017

CNX--BANK NIFTY

Open-24389.20--High-24494.35--Low-24319.20—Close-24434 on

 1-9-2017

MajorSupport:-24207.70/24103.30/23897.85/23897.85/23852.65/23822.20.

Major Resistance: - 24496.20/24591.80/24651.05/24979.35.

For-4-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -24326---260---207/24103.30/24053/23897.85/23852.65.

Resistance: 24455/24496.20/24591.80/24651.05/24979.35.

Further to my last post of 28-8-2017, it is still making higher bottom and the last bottom is at 24103.30 and also crossed short top of 24422.45 but yet to cross the important recent top of 24496.20. It came very close to it today but could not cross it, therefore crossing the top of 24496.20 is very important for the extended move of this on-going rally else this rally may end. However as long as it holds its recent bottom of 24103.30 chances is that it may cross the important top of 24496.20. Moving up from 24496.20 it will face stiff resistance at 24511/24673/24874/24924 and it could only regain the up momentum and may make an attempt to cross its previous all time high of 25198.80 if it moves above 24924 and sustains on the closing basis else this rally may end at or  around any of the said points . I once again repeat that till it breaks its last bottom of 24103.30 it may cross its important top of 24496.20 and this up rally may continue, but if it breaks the said bottom even then it has good support in the range of 23897-----23822.20, so the real breakdown can only happen if it breaks and sustain below23822.20 on the closing basis.

The trading range for 4-9-2017 would be 24651---24591---24511---24496.20----24389---24318---24207. Since it has yet to cross its important top of 24496.20 therefore buy on decline should be avoided for the day and long call should only be attempted if moves above 24496.20 and sustain with a stop loss of below 24300. The aggressive trader can try long call if it stays above 24438 with the same stop loss of below 24300 but it could be a risky bet.

It is important to mention here that although it is making higher bottom and top by crossing the short top of 24422.45 but yet to cross important top of 24496.20 on the daily chart. It is above its all short and long term moving averages. But not to forget that on the weekly chart the strong negative divergence in RSI is still intact and MACD is also in the sell mode , as of now it indicates that it may drift on the downside in coming days/ weeks, therefore long trade should be handled with extreme caution and care because this on-going up move can end abruptly also and may trap the long trader unaware.  

Remark: - It still seems that it has topped out at 25198.80 on 2.8.2017. It is making higher bottom now but it has not yet crossed its important top of 24496.20 therefore it cannot assumed that the on-going up move may be extended until and unless it crosses the top ,so long call should only be tried  above 24496.20. But in view of the negative divergence in RSI and MACD in sell mode on the weekly chart, one should be extremely vigilant and cautious in the long trade. 

 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.

Note: Price stated here is of spot market.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

A TECHNICAL VIEW ON CNX---BANK NIFTY---28-8-2017

CNX--BANK NIFTY

Open-24374.75--High-24411.05--Low-24224.85—Close-24274.20 on

 24-8-2017

Major Support: - 24053.70/23897.85/23852.65/23822.20.

Major Resistance: - 24411.05/24455/24496.20/24591.80/24651.05.

For-28-8-17 the intra-day short support and resistance levels are given here-under:-

Support: -24224.85---24157/24105/24037/23897.85/23852.65.

Resistance:24300/24381/24411.05/24455/24496.20/24532.40.

It seems that it has  topped out for now at 25198.80 on 2.8.2017. Then it corrected and made a short bottom at 23822.20 and gave a pullback rally and in the process it has made a higher bottom at 23852.65 and the pullback rally is still on but since it has yet to make higher top, therefore until and unless it makes a higher top by crossing the earlier top of 24496.20 this rally may fizzle out anytime. But if it crosses the top of 24496.20 and sustain then this rally may extend further and may move to 24673/24874/24924 but it will regain the up momentum rhythm once it moves above 24924 and sustain.

In view of the above observation the trading range for 28.8.17 is between 24496.20---24037 and moving up it will face resistance at 24300/24381/24411.05/24455 and going down support at 24235/24157/24053. So trying long call before it crosses 24496.2 could be a risky proposition. But since it made a higher bottom, therefore those who wish to try long call can try above 24317 with a stop loss of below 24200, but it would be relatively safe to try long call if it moves and sustain above 24496.20 with a stop loss of below 24380.

It is important to mention here that as of now the technical indicators indicates that it is likely to drift down and break 23822 level for sure in coming days, if it sustains below 23822 then it can move down to 23530/23445/23311 chances of which are reasonably high as of now. However if it moves otherwise it has to go beyond 24673 and then 24924 and sustain on the closing basis. The pullback is on but the bias is on the downside as of now, so for safe trader it would be better to avoid long call.

Remark: - It has definitely topped out for now, but since it has made a higher bottom and the pullback rally is on and may be extended. Therefore aggressive trader can try long call as suggested above. But I caution that these relief rallies can fizzle out abruptly also, therefore instead of taking advantage of the pullback rally look for an opportunity to sell on the rise at appropriate points (strong resistance points could be the potential sell points-see resistance points mentioned above) or sell below the critical points till it gives sign of complete bottoming out, which looks reasonably away at this point of time.            

 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.

Note: Price stated here is of spot market.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.

A TECHNICAL VIEW ON CNX---NIFTY---28-8-2017

 CNX-NIFTY

Open-9881.20—High-9881.50---Low—9848.85---Close—9857.05 on 24-8-2017

Major Support: -9838/9792.05/9740.10/9709.30/9700/9688/9685.55/9621.40/9532.60.                                                                                                                    

Major Resistance: -9884.55/9947.75/9970/9988.35/10031/10048/10088.10/10114.85/10131/10137.85.

Critical Point:-9870 & 9970.

For-28-8-17 the intra-day short support and resistance levels are given here-under:-

Support: -9856—48/9819/9804/9790/9740/44/9928.20/9912/9870/9857.25/9838/9792.05/9778.85.

Resistance: - 9870—75/9899/9907--9927/9947.80/9970/9988.35/10031/10048.10088.10/10114.85/10131/10138.

It has been moving up for last 3 days but within the last big down bar which it made on 21.8.2017( bar High—9884.35 & Low-9740.10) It went near the high of the bar but could not cross it, which shows lack of strength. However since it has made higher bottom at 9740.10 and if it crosses the high of the last down bar i.e. 9884.35 it could move further and may make an attempt to cross the previous top of 9947.80 to make higher top. But doing so, it will face resistance at 9899/9907 & 9931. But once its crosses 9947.80 and sustain then the up move may be extended. Moving up further it would face strong resistance at 9965.04/9970/10031&10048 and it could only regain up momentum if it gives sustained close above 10048. Similarly moving down it will find support at 9843/9818/9792/9783.65/9740.10.

In view of the above observation the trading range for 28.8.17 is between 9947.80---9848 and moving up it will face resistance at 9884.35---9907---9931. So trying long call before it crosses 9947.80 could be a risky proposition. But since it made a higher bottom, therefore those who wish to try long call can try above 9858 with a stop loss of below 9819, but it would be relatively safe to try long call if it moves and sustain above 9884.35 with a stop loss of below 9843.

I once again reiterate (see my post of 22.8.17) that the technical indicators still indicates that it is most likely to drift down and break 9448.75level in coming days, however to move otherwise it has to go beyond 9970 and then 10048 and sustain on the closing basis. The pullback is on but the bias is on the downside as of now, so for safe trader it would be better to avoid long call.

Remark: - It seems that it has certainly topped out for now, but since it has made a higher bottom and the pullback rally is on and may be extended . Therefore aggressive trader can try long call as suggested above. But I caution that these relief rally can fizzle out abruptly also,therefore instead of taking advantage of the pullback rally look for an opportunity  to sell on the rise at appropriate points(strong resistance points could be the potential sell points-see resistance points mentioned above) or sell below the critical points till it gives sign of  complete bottoming out, which looks reasonably away at this point of time.  

 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.

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.

A FUNDAMENTAL-TECHNICAL OBSERVATION ON COAL INDIA LTD--26-8-2017

 COAL INDIA LTD

A CURSORY FUNDAMENTAL LOOK

Current Market Price:-241.30 on 24.8.2017.

All time high:-Rs.447.10 on 5.8.2015.

All time low:- Rs.233.70 on 11.8.2017.

It is a Public Sector Undertaking engaged in coal mining and they calls it NAVRATNA but ironically not performing well operationally and off course financially. The latest key parameters of the company are given here-under.

Equity:-62,074=10(cr) / June Quarter result: +321.80   / E.P.S---0.05

It has a huge equity base and its June qr E.P.S is a paltry .05 paise, furthermore if other income is excluded from it there would be loss in this quarter and some earlier quarter too. However based on this  quarter performance the annualized EPS would not be more than .30 paise normally and on highly optimistic note take it as Rs.2/ for the F.Y-2017-18. Therefore it is presently running at a P/E of 804.33 and 120.65 on forward earning, which is phenomenally high and would not be able to sustain the price line until and unless financial performance drastically improves. It looks weak fundamentally therefore fresh investment in the company is not suggested.

A TECHNICAL –VIEW

It is terribly bad technically and making lower top and bottom on the chart and hit an all time low of 233.70 on 11.8.2017. Furthermore it is way below its long term moving averages on daily and weekly chart which is bad sign. However after hitting the new low of 233.70 it is showing sign of pull back and came above some of its short term moving averages but it seems that this pullback may not last long. However it has good support from its bottom at 240.70/240.30/238.20 and finally at 233.70 and it closed just above it on24.8.2017, therefore as long as it holds 238.20&233.70 on the closing basis the pullback may continue but moving up it will face resistance at 249.40/253.20/259.90/265.25/271/284.45/291.85/296.80/300 but this up move can fizzle out abruptly also. The overall technical setup is extremely bad and once the on-going short pullback is over, which can happen anytime it is expected to register new low in coming days/weeks. Therefore fresh investment in this stock should be avoided and those who are stuck with it are advised to take advantage of this pullback to get out of the stock on the rise or get out for sure if it moves and closes below 233.70.

Remark:-The long term trend is down. It is showing some sign of short pullback now which may not last, furthermore since it weak on both fundamental and technical parameter as of now so long call or investment is completely ruled out. Those who are stuck should look for an opportunity to get out of this stock on the rise or 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.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.

A TECHNICAL VIEW ON CNX--NIFTY---24-8-2017

 CNX-NIFTY

Further to my post of 22-8-17, since it did not break its strong support range of 9738---9709---9685 it reasonably bounced back again intra-day but closed with a meager gain of 11+ point’s on 22.8.17. But today it gave a robust rise and closed at 9852.50 with a gain of 86.95 points. Although it has made higher bottom at 9740.10 but yet to make higher top and to make a higher top it has to cross 9947.80 mark and if it makes an attempt to cross it, on the way it will face stiff resistance from its short term moving averages in the range of 9858---9871---9881---9935, therefore as of now it seems that the down move is still on and it is an extended pullback rally and may exhaust at any of the aforesaid points. However even if it crosses its recent top of 9947.80 moving up it will face strong resistance at 9965.04/9970/10031&10048 and it could only regain up momentum if it gives sustained close above 10048.  

In view of the above observation it has a trading range of 9947.80---9740.10  as of now with stiff resistance in between in the range of 9858---9871---9881---9935. So trying long call before it crosses it recent top of 9947.80 could be a risky proposition. But since it made a higher bottom, therefore those who wish to try long call can try keeping the aforesaid range in mind.

I once again reiterate (see my post of 22.8.17) that the technical indicators still indicates that it is most likely to drift down and break 9448.75level in coming days, however to move otherwise it has to go beyond 9970 and sustain on the closing basis. The bias is clearly on the downside as of now, so it would be better to avoid long call in general.

Remark: - It seems that it has certainly topped out for now, but since it has made a higher bottom now the pullback rally may be extended but it would be safe to try long call only if it moves above 9970 and sustain on the closing basis. Therefore instead of taking advantage of the pullback rally look for an opportunity  to sell on the rise at appropriate points or sell below the critical points till it gives sign of bottoming out, which looks reasonably far at this point of time.  

 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.

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.