CNX-NIFTY-A TECHNICAL VIEW FOR—2-6-2016

CNX-NIFTY

Closed at 8179.95 on 1-6-2016 (Open-8179.20/High-8215.35/Low-8171.05)

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: -8180.20/8195.65/8215.35/8244/8336/8375/8550-8600.

                      

The trend is up and technically it is looking good but the range of 8200--8245 is highly vulnerable for correction. The up-move will only be threatened if it breaks 7972 and finally 7938 and sustain below these levels. Therefore long call is suggested but on decline and not below 7972 or if it moves and sustain above 8216.  When I wrote last (see my post for 27-5-2016) I had suggested booking profit in the long trade on the rise and re-entering long trade again on decline. I had also suggested to try short call in the range of 8176—8195 with a stop loss of above 8220 for a down correction and the said stop loss for short trade is still not triggered.

 Please note that it is still moving around the said range for the last three days and if it fails to cross 7216 and then 8245 soon the chances are that it may correct from here before resuming the up move again. It is therefore suggested that long call can be tried  but only if it moves and sustain above 8216 else on a reasonable decline, but it should be surely avoided if it consistently starts trading below 8160 because then it could correct sharply and moving down it will find support at 8134/8090/8055/8024/7972 . The fall may be arrested at any of these points and it may resume the up-move again, so long call can be attempted on decline at proper points but not below 7972 till it bounces back above 8000 again. Please note that to take advantage of the expected down correction short call can also be tried if it consistently trades below 8160.The bias is up now.

TRADING OPTION FOR-2-6-2016

1.  It is suggested to try long trade on decline at proper points but not below 7972 with a stop loss of below 7920.

2. Long call can be tried if it moves and sustain above 8216 with a stop loss of below 8150 for a target of 8245/8336/8375.

3. Correction looks imminent therefore sell trade can also be tried if it trades below 8160 with a stop loss of above 8190 for a correction only for a target of 8134/8088/8055/8024.

 Remark: - The trend is up but it is in the highly vulnerable zone therefore long call should be tried on decline. Short call can be attempted for down correction 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.