Thursday, 9 June 2016

CNX-NIFTY-A TECHNICAL VIEW FOR—10-6-2016

CNX-NIFTY

Closed at 8203.60 on 9-6-2016 (Open-8273.35/High-8273.35/Low-8184.60)

Support: -8160/8055/7992/ 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: -8213.60/8245/8295/8336/8375/8489.55/8530/8550-8600/8621.
                      
As perceived (see my post for 8-6-2016) it corrected today and went below its critical point of 8245 and also below its recent bottom of 8201 on the line chart intra-day but managed to close just above it, since it did not break the recent bottom of 8201 on the closing basis so the on-going up move may not have fully exhausted as yet, but it showed some weakness today, therefore looking at today’s move fresh long trade should only be attempted either if it moves and sustain above 8275 or after the reasonable decline in the range of 8040—7992 but not below 7992 because sustained break below 7992 & 7972 and finally 7938 will threaten the uptrend and sustained break below 7870(it changes every day) may put the break on up move and fresh down move may begin, which may please be noted.

 In view of the above observation it seems that it may correct further from here and moving down it will find good support at 8195/8172/8158/8134/8070/8005/7992/7972/7938/7852 and it may complete correction at any of these points possibly in the range of 8070—7992 if this up move has to continue, because sustained break below 7992 & 7972 and finally 7938 will give potential threat to the uptrend. Therefore on decline long call can be tried either near 8040-7992 range or wherever it gives visible indication of correction completion. Short call can be tried now below 8201 or below 8184 for taking advantage of the down correction.  

It is important to mention here that sustained break below 8134 can drag it down faster.


TRADING OPTION FOR-10-6-2016

1. Short call can be tried for corrective move if it breaks and sustains below 8201 and can add on position below 8184 with a stop loss of above 8245 and stop loss of above 8220 for the added short position, for a target of 8172/8158/8134/8134/8073.

2. Long call can be tried on dip within the range of 8040—7992 with a strict stop loss of below 7938 or if it moves and sustain above 8275 with a stop loss of below 8245.


Remark: - The trend is up. But since it corrected today, it has to be seen how it pans out in a day or two, therefore it would be sensible to avoid long call on 10-6-2016.Short call can be attempted as suggested above. 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 pointsDO 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.


1 comment:

  1. Nifty is a highly sensitive index of NSE. It is good if traders learn regular updates on it from post like these and then trade. Timely updates can be learned from epic research daily reports as well.

    ReplyDelete

Thank you for sharing your views.