CNX--NIFTY- A TECHNICAL VIEW---13-7-15

                                                                                                                 12^th,July,2015

OVERVIEW  ON THE CNX NIFTY           

 CLOSED AT 8360.55 ON 10-7-15.

Nifty did give upside breakout from the critical point of 8504.95 on 6-7-15 and closed at 8522.15 but could not sustain it for minimum time of even 3 days and fell back below 8400 on the 3^rd day to close at 8363.05 on 8-7-15 this move indicates that the said breakout was not valid and this was a corrective up rally which may be over. If it so then it should not move above 8505, therefore the range for it is between 8170---8505 for now and breakout on either side will decide which way it is going to move. Please note that  it will regain momentum only if it moves above 8627 and sustain, chances of which are looking slim at this point of time similarly break below 8170 mark will accelerate the fall and it may break the bottom of 7940.30 it made few days back. Looking at the technical parameters my bias is on the downside and I would avoid long call below 8505 instead I, would look for the opportunity to sell. However the market swings provides opportunity for both long and short trades for the intra-day traders. Going up it will find resistance at8423.15 / 8467.15 / 8489.55 8505 & 8561.35 and moving down it may get support at 8315.40 / 8269 / 8170 / 8065 / 7997 / 7961 / 7940.

SUGGESTION:-  

1.Those who want to try long call can try it above 8377 with a stop loss of below 8350. Avoid long call below 8360 and then below 8315 for sure. I would not prefer to try long call below 8505.

2.Short call can be tried either below 8360 with a stop loss of above 8425 or on the rise at appropriate points.

Please note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

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.

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.