CNX-NIFTY-A TECHNICAL VIEW FOR—28-6-2016

CNX-NIFTY

Closed at 8094.70 on 27-6-2016 (Open-8039.35/High-8120.65/Low-8039.35)

Support: -8063.90/8055/8039.35/7992/ 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 negative bias and then moved up and tried to fill the gap it created on 24-6-2016 and it has filled more than 50% of the gap but it still exist and if it makes an attempt again to fill the remaining gap it can hit 8188 level, but moving up will not be easy from here because it will face series of resistance in the range of 8141---8190. Therefore if it does not fill the gap in next 2-3 days time then it may not fill the gap immediately and may fill it at ease may be after correcting further from here.

Please note that it is showing some sign of weakness after the colossal fall of 24-6-2016 as it has broken a series of previous bottoms and tops on the line chart and made lower bottom of 8088.60, also making lower top and bottom on the bar chart and furthermore it is running below its short term moving averages, which are in the range of 8141—8188(it changes every day). Therefore chances of moving down looks greater then moving up from here till it closes at least above its short term moving average upper band of 8188. It is therefore suggested to avoid long call now, instead try short call if it moves and sustain below 8080 or on the rise near 8188.

The broad range for it now is between 8245—7992----7946---7938---7927—7908. Please note that it will only regain lost momentum if it closes above 8245 and sustain and similarly sustained break below 7927 and then below 7908 will put a break on the uptrend and a fresh down move may begin till it moves above 7947 again and sustain. Therefore it is suggested to structure your trade keeping the above range in mind. Avoid long trade below 7908 for sure. 

TRADING OPTION FOR-28-6-2016

1. It is suggested to avoid long trade.

2. However aggressive day trader can try long call if it moves and sustain above 8100 for some time with a stop loss of below 8080 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 8080 with a stop loss of above 8122 for a target of 7992/7972/7946/7927/7906 or sell on the rise near 8153--8188 but not above 8188 with a stop loss of above 8230.

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 it is showing some weakness therefore long call should be avoided now, 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.