CNX-NIFTY-A TECHNICAL VIEW FOR—27-6-2016

CNX-NIFTY

Closed at 8088.60 on 24-6-2016 (Open-8029.10/High-8100.70/Low-7927.05)

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: -8153.25/8188.30/8213.60/8245/8285.60/8295/8336/8375/8489.55/8530/8550-8600/ 8621.

                      

It opened with a huge down gap of more than 240 points after the Brexit outcome and went down further and hit the perceived range of 8010—7946---7930 where long trade was suggested ( see my post of 23-6-2016 and earlier post), it respected that range and bounced back and closed reasonably above that range. However this down move has upset the rhythm of the market.

It is important to mention here that the gap it created today is still there and theoretically it can make an attempt to fill this gap in next 3-4 days time, if it does then it can come up to 8189 level. But it is likely to show strength only if it closes above 8245 and sustain, which may be kept in mind. 

Kindly note that today’s down move was a big jolt to the on-going up move and it has broken few important trend line  support level also in the process , therefore how it will behave in next few days time has to be seen. But technically as long as it holds the range of 7992—7972—7946—7906 the uptrend may be in place, sustained break below 7906(it changes every day) will threaten the uptrend and sustained break below 7718(it changes every day) will possibly end the uptrend and then a fresh down move may begin. Similarly to regain the up momentum again it has to close above 8245 and sustain. The broad range for it now is between 8245—7992—7906.

In view of today’s devastating down move it is suggested not to hurry for long trade now because it may go down further and break  today’s low, therefore  see whether it holds the 7992--7946—7906 range in next 3-4 days time or not, if it does hold this range then take long call. Avoid long call for sure if it sustains below 7906 till it moves and sustain above 7947 again. It  witnessed huge volatility today and if it continues then it may provide both side trading opportunity for day traders during the day till it breaks out on either side of its important range  of 8245—7906. Therefore traders can take their trading call keeping the said range in mind(take help of support and resistance level also mentioned above for entry, exit and trailing stop losses), but I caution that long trade could be highly risky at this point of time, therefore traders should get alerted below 7992 in long trade and exit trade below 7906. Short call seems a safer bet as of now if price movement permits. 

                            TRADING OPTION FOR-27-6-2016

1. It is suggested to avoid long trade.

2. However aggressive day trader can try long call if it moves and sustain above 8105 for some time with a stop loss of below 8063 for a target of 8145/8153/8188.It could be a risky trade.

3. Short call can be tried if it moves and maintain below 8063 with a stop loss of above 8105 for a target of 7992/7972/7946/7927/7906 or sell on the rise near 8190--8205 but not above 8205 with a stop loss of above 8250.

4. Long call can be attempted if it comes again near the lower band of the range of 8010—7946 with a strict stop loss of below 7900.

Remark: - The trend is up now. But today’s move has upset the up momentum and this correction may continue, therefore it is suggested to wait and watch for a day or two to initiate fresh long call. Instead short call seems to be a better bet now if price movement supports. 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.