CNX-NIFTY-A TECHNICAL VIEW FOR—13-6-2016

CNX-NIFTY

Closed at 8170.05 on 10-6-2016 (Open-8180.25/High-8265.60/Low-8162.85)

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: -8180/8213.60/8245/8295/8336/8375/8489.55/8530/8550-8600/8621.

                      

It finally broke the recent bottom of 8201 on the line chart confirming that the on-going up move has exhausted and it will correct from here before making an up move again.  Going down it will find good support at 8160/8134/8070/8005/7992/7972/7938/7875 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 near 8040-7992 range or wherever it gives visible indication of correction completion but not below 7938 and certainly not below 7875(it changes every day) because sustained break below this mark may put an end to this uptrend and sustained break below 7680(it changes every day) may begin a fresh down move, which may please be noted.

Since it has broken its recent bottom on the line chart, therefore it is a sell on the rise market as of now till it moves and close above 8273.05 or start making higher bottom and top again. It is therefore suggested to try short trade on the rise till it moves and close above 8273.05 or if it moves and sustain below 8160 then sell trade can be tried for the entire week starting from 13-6-2016. It is in corrective mode now for sure therefore it has to be seen how it pans out in next 2-3 days time.

TRADING OPTION 

1. Sell on the rise at proper points but not above 8275 with a stop loss of above 8300. The possible sell point could be at 8213/8245/8270.

2. Sell below 8160 with a stop loss of above 8220 for a target of 8134/8073/8055/8005.

3. Long call can be attempted on decline but 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 now. It is now in correction mode therefore long call should be avoided now and should only be attempted in 8040-7992 range. Short call seems safer bet as of now so one can try short call 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 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.