CNX-NIFTY-A TECHNICAL VIEW FOR—1-7-2016

CNX-NIFTY

Closed at 8287.75 on 30-6-2016 (Open-8260.25/High-8308.15/Low-8242.10)

Support: -8243/8212/8153.25/8146/8134/8063.90/7992/ 7972/7946.35/7938.45/7890/7849.80/7822.70/7777.60/7735.75/7723.85/7714.15/7691.20/7678.35/7667.25/7582.25/7551/7539.50/7516.85/7422/7405/7350.30/7295/7252.

Resistance: -8295/8308.15/8336/8375/8489.55/8530/8550-8600/ 8621.

                      

It opened with an up gap for the second consecutive day and moved higher the gap it created today and on 29-6-2016 is still there and theoretically it can make an attempt to fill this gap in next 3-4 days time and if it does then it can come down to 8212 and then 8146 level, which may please be noted. It is important to mention here that if it opens with an up gap on 1-7-2016 also say above 8308.15 then it can witness down correction the same day. Please note that these gaps are not good for a steady rise in the market.

It gave a robust up move today and closed above its all recent parameters (see my post for 30-6-2016) which indicates that up may continue as long as it sustains above 8243 on the closing basis. Therefore   long call can be attempted above 8310 or on decline but not below 8170 but it is advised to be careful in long call below 8245.Short call should be avoided now and existing short call should be squared off if it sustains above 8310 or on decline near 8190 and then near 8146. Please note that sustained close above 8336.30 may take it up to 8550—8600 levels.

Today’s move indicate  that it is ready for a fresh up move again, but it is important to mention here that today was not a normal day for the market because it was June-2016 series settlement day and monthly close for the market . In view of this and above observation it is suggested to watch the market movement for at least 3-4 trading session to see whether today’s rise is sustainable or not. Therefore it is suggested to handle your trade with extreme caution now.

  

TRADING OPTION FOR-1-7-2016

1. Long call can be tried above 8310 with a stop loss of below 8240 for a target of 8336/8445.

2. Long call can be tried on decline but not below 8170 with a stop loss of below 8140. Keep your long position light if it consistently starts trading below 8243.

3. Short call can be tried if it moves and sustain below 8140 with a stop loss of above 8190 for a target of 8088/8063/7992/7972.

 Remark: - The trend is up. Today’s move indicates that correction may be over but since it was June-16 series settlement day and monthly close too, therefore watch the market for 3-4 days for confirmation. However long call can be attempted as suggested above and fresh short call should be avoided for now. Please initiate your trade after watching the market for some time.  

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.