CNX-NIFTY-A TECHNICAL VIEW FOR—29-6-2016

CNX-NIFTY

Closed at 8127.85 on 28-6-2016 (Open-8096.05/High-8146.35/Low-8086.85)

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 on flat to positive note and then moved up but could not fill the gap completely. However it could still make an attempt in next 1-2 days to fill the gap and if it does then it can hit 8188 level which may please be noted. (See my post for 28-6-2016 in this regard)

It is still looking weak despite its positive close today because it has made lower bottom on the line and bar chart and still not made higher top, furthermore it is running below its short term moving averages which are in the range of 8140---8186(it changes every day) therefore it seems that it may still correct from here till it closes above this range. However, even if it closes above its short term moving averages range it will regain lost momentum only if it closes above 8245 and sustain and then crosses its recent top of 8270.45 and 8295 on the line chart and bar chart respectively which looks slightly difficult to happen at this point of time. In view of the above it seems that the up journey from here may not be smooth.  It is therefore suggested to avoid long trade till it moves above its short term moving averages at least i.e. 8186 and sustain., instead short call can be tried on the rise near 8154--8188 but not above 8188 or sell below 8080.

TRADING OPTION FOR-29-6-2016

1. It is suggested to avoid long trade till it closes above 8188.

2. However aggressive day trader can try long call if it moves and sustain above 8154 for some time with a stop loss of below 8088 for a target of 8188/8209/8245.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 8154--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. It is still showing some weakness therefore avoid long call till it moves and sustain above 8188 at least ,short can be tried 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.