CNX-NIFTY-A TECHNICAL VIEW FOR—23-6-2016

CNX-NIFTY

Closed at 8203.70 on 22-6-2016 (Open-8213.65/High-8238.35/Low-8153.25)

Support: -8180/8160/8063.90/8055/7992/ 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: -8213.60/8245/8257.25/8295/8336/8375/8489.55/8530/8550-8600/ 8621.

                      

It had a down day today and again it closed with a small loss of 16.20 points. It came near its important support point of 8140 (see my post for 22-6-2016) and then bounced back but finally closed below one of its higher top of 8206.60 on the line chart, which is concerning. Please note that now if it fails to close above 8238.50 and then move above 8245 & 8258 in next 2-3 days time then it can go in for down correction again and if it does then this time it could be deeper and it may not hold the immediate support level in the range of 8160—8140 and may hit its very strong support area in the range of 8010—7946. Therefore buy on dip strategy should be put on hold now and long call should only be attempted if it closes above 8238.50 or if it moves and sustain above 8245 for some time intra-day.

Please note that in case of down move again long call should only be attempted around, near or within the range of 8010—7946 but not below 7930 because sustained break below 7930 may put a break on the uptrend. Although the trend is up but looking at today’s close it seems that it can correct again, therefore short call can also be tried if it moves and sustain below 8170 or on the rise but not above 8239 for taking advantage of the expected down correction again.  

TRADING OPTION FOR-23-6-2016

1. Long call can only be tried if it closes above 8238.50 or if it moves and sustain above 8245 for some time intra-day with a stop loss of below 8175 for a target of 8258/ 8295/8317/8336.

2. Aggressive trader can try long call if it moves and sustain above 8213.60 for some time with a stop loss of below 8175.It could be a risky trade.

3. Short call can be tried if it moves and maintain below 8170 with a stop loss of above 8215 or sell on the rise but not above 8239 with a stop loss of above 8260.It could be a risky trade but worth trying

4. Long call can be attempted on decline but within the range of 8010—7946 with a strict stop loss of below 7900.

Remark: - The trend is up now. But today’s close below its recent higher top of 8206.60 on the line chart indicates that it could go in for correction again. It is therefore suggested to try long call if it moves and sustain above 8245 or on decline in the range of 8010--7946. 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.