CNX-NIFTY-A TECHNICAL VIEW FOR—17-6-2016

CNX-NIFTY

Closed at 8140.75 on 16-6-2016 (Open-8180.65/High-8180.65/Low-8074.45)

Support: -8063.90/8055/7992/ 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: -8160/8180/8213.60/8245/8295/8336/8375/8489.55/8530/8550-8600/ 8621.

                      

The up move of 15-6-2016 was completely retraced today in fact much beyond that which speaks of weakness in it. Furthermore it is making lower top & bottom on the line chart and made lower top of 8213.20 on the bar chart also but yet to make lower bottom. It still seems to be sell on the rise market but the silver lining is that its recent bottom of 8063.90 on the bar chart is intact, secondly it did break its recent lower bottom of 8108.85 on the line chart intra-day but managed to close reasonably above that, so if it does not close below 8108.85 on the line chart or does not break 8063.90 on the bar chart in 2-3 days time and in the meanwhile moves above its recent top of 8206.60(close above it) & 8213.60 on the line and the bar chart respectively, then the correction may be over and it may resume the up move again. Therefore short call can be attempted here but with due caution and only if it maintains below 8140 and fresh short position can be added if it sustains below 8108.85 and below 8063.90 for sure.

It is in correction mode now, however long call can be attempted in the range of 8010—7947 since it is a very strong support area or try if correction Completion signal emerges as mentioned above, but avoid long call below 7938 for sure, because sustained break below this mark may put a break on the uptrend and sustained break below 7885(it changes every day) may trigger fresh down move which may please be noted.

  

TRADING OPTION FOR-17-6-2016

1. Sell if it maintains below 8140 with a stop loss of above 8215 for a target of 8108/8084/8063/8055/8005/7992/7972.

2. Sell on the rise but not above 8213.60 with a stop loss of above 8245.

3. Long call can be attempted on decline but within the range of 8010—7947 with a strict stop loss of below 788 or if it moves and sustain above 8213.60 with a stop loss of below 8140.

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 8010-7947 range or if it moves above 8213.60. 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.