CNX-NIFTY-A TECHNICAL VIEW FOR—3-6-2016

CNX-NIFTY

Closed at 8218.95 on 2-6-2016 (Open-8156.90/High-8229.50/Low-8154.75)

Support: - 8213.60/8180/8160/8055/7992/ 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: -8245/8336/8375/8550-8600.

                      

It opened on a weak note and traded in a short range before picking the up momentum in last 45 minutes trade and closed near the high of the day. It is exhibiting tremendous strength and it seems that the correction on the closing basis may be over, as it has made higher bottom of 8160.10 and crossed recent top of 8178.50 on the line chart. Therefore long call can be tried now or on decline but not below the recent bottom of 8160 on the closing basis because break below this level may drag it down to 8050—8000 range where one should attempt long trade for sure. The up-move will only be threatened if it breaks 7992--7972 and finally 7938 and sustain below these levels.   Moving up it will face stiff resistance at 8245---8336---8380---8560—8700---8821.

TRADING OPTION FOR-3-6-2016

1. Long call can be tried if it sustain above 8213.60 with a stop loss of close below 8160 for a target of 8245/8336/8375.

2.  It is suggested to try long trade on decline but not below 8160 as of now with a stop loss of below 8130.

Remark: - The trend is up but and looking at the higher top and bottom on the line chart it seems that the correction on the closing basis may be over. So long call 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.