Saturday, 18 June 2016

CNX-NIFTY-A TECHNICAL VIEW FOR—20-6-2016

CNX-NIFTY

Closed at 8170.20 on 17-6-2016 (Open-8176.65/High-8195.25/Low-8135.80)

Support: -8160/8063.90/8055/7992/ 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: -8180/8213.60/8245/8295/8336/8375/8489.55/8530/8550-8600/ 8621.
                      
It had an up move today and it closed with a gain of 29.45 points.It made lower top and bottom recently on the line chart but today it made a higher bottom again at 8140.75 which is a positive sign and part indication that correction may be near completion but it is yet to make higher top and it will only make it, if it close above 8206.60. Furthermore on the bar chart also it made a lower top of 8213.60 but yet to make a lower bottom .Therefore close above 8206.60 and then sustained move above 8213.60 is important for correction completion confirmation. Similarly close below 8140.85 and then sustained break below 8063.90 will indicate that this correction may continue and it could further head lower before resuming the up move again.

 In view of the above observation it seems that the range of 8170.20 to 8213.60 is a no trade zone, however aggressive day trader can try long call above 8180 but it would be safe to try long call if it moves and sustain above 8213.60. Please note that short call can only be attempted if it moves and sustains below 8135 for some time.  

In case the correction continues, even then long call can be attempted in the range of 8010—7947 since it is a very strong support area, 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-20-6-2016

1. Aggressive day trader can try long call if it moves and sustain above 8180 for some time with a stop loss of below 8135 for a target 8214/8245/8295/8336.

2. It would be safe to try long call if it moves and sustain above 8214 with a stop loss of below 8160.

3. Sell if it maintains below 8135 with a stop loss of above 8195 for a target of 8108/8084/8063/8055/8005/7992/7972. Can add fresh short position below 8063 with a stop loss of above 8100 but short commitment should be squared off completely or at least lightened  in the strong support range of 8010--7947.

4. Long call can be attempted on decline but within the range of 8010—7947 with a strict stop loss of below 7880.

Remark: - The trend is up now. It seems that correction may be near completion therefore take your trading call according to the price movement and 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. Very useful updates on CNX nifty can be learned from this post. Nifty being the benchmark index keeps on fluctuating. And to sustain with good profit traders must learn its movements timely. Learn more on stock market by following epic research.

    ReplyDelete

Thank you for sharing your views.