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

CNX-NIFTY

Closed at 8220.80 on 3-6-2016 (Open-8246.20/High-8262/Low-8209.85)

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

                      

Technically it is showing good strength and up move seems to be intact.  But it is important to mention here that 8243.12 or say 8245 which is 61.80% and the last theoretical retracement point of the total fall from the all time top of 9119.20 and recent bottom of 6825.80 is a very critical resistance, therefore till it gives close above it and sustain, further up journey may not be easy and if it fails to cross this level soon then it may give sharp down correction from here before resuming the up move again. Today it maintained above 8243.12 level for almost the entire day but in last 50 minutes of trade it came into negative territory and closed at the lowest in real time trade but the adjusted close was with a meager gain of 1.84 points. It showed some sign of exhaustion today. It is therefore suggested to wait for close above 8245 for initiating fresh long trade.  The range for the week starting from 6-6-2016 is between 8262—8245—8213.60—8160. However day trader can still try long call above 8221 with an alert point at 8213 & 8178 and exit point below 8160(it could be a risky trade )or try on decline but not below 8160 because close below 8160 can take it down for a deeper correction to the level of 8055—8020—7992. In view of the above observation for safe traders it would be prudent to give a day’s trading break before deciding to take fresh long call.   

It is important to mention here that the up-move will only be threatened if it breaks 7992--7972 and finally 7938 and sustain below these levels. Therefore if it corrects then fresh long call should surely be attempted in the range of 8050—7992 with a stop loss of below 7930 .The bias is up as of now.

 

TRADING OPTION FOR-6-6-2016

1. Long call can be tried if it sustain above 8221 with an alert point at 8213 and short stop loss of below 8200 for a target of 8245/8336/8375. Please note that the authentic stop loss for long trade would be close below 8160. It could be a risky trade at this point of time.

2. Long call can be tried on decline near 8160 but not below it as of now with a stop loss of below 8130.

3. Contrarian trader can try short call for correction only if it sustains below 8209 with a stop loss of above 8245 for a target of 8178/8160/8134. It could be a risky trade but worth trying.

NOTE: - It would be safe to try long call once it closes above 8245.

Remark: - The trend is up but it is near its critical resistance point and today’s move  showed some sign of fatigue, therefore it is suggested to take fresh long call once it closes above 8245 or otherwise take your trading call 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.