CNX-NIFTY-A TECHNICAL VIEW FOR—8-6-2016

CNX-NIFTY

Closed at 8266.35 on 7-6-2016 (Open-8235.55/High-8294.95/Low-8216.40)

Support: - 8245/8213.60/8160/8055/7992/ 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: -8295/8336/8375/8489.55/8530/8550-8600/8621.

                      

 It is showing tremendous strength and today it closed above its very critical resistance point of 8245(see my post for 6-6-2016) which is a good sign. It is important to mention here that the uptrend is intact but it seems that on the line chart the up move it started from 7731 on 24.5.2016 is slightly getting heavy  and may be near  the culmination point and  it may possibly exhaust at the 8336-8375/8490/8562 levels and then may reasonably correct before resuming the up move again. It is pretty close to the first point, therefore in view of the above observation long trade should be handled with extreme caution and care. However technically there is no weakness in it as yet therefore long call can be tried if it maintains above 8267 with an alert point at 8245 and the 8220 and exit point is close below 8201.Avoid fresh long call below 8245 and below 8220 for sure as of now.   

 

TRADING OPTION FOR-8-6-2016

1. Long call can be tried if it sustain above 8267 with an alert point at 8245 & 8220 and stop loss of below 8200 for a target of 8295/8336/8375. 

2. Long call can be tried on decline near 8201 but not below it as of now with a stop loss of below 8175.

3. Contrarian trader can try short call for correction only if it sustains below 8201 with a stop loss of above 8245 for a target of 8178/8160/8134. It could be a risky trade but worth trying .

Remark: - The trend is up. Since   it closed above its critical resistance point of 8245 today, therefore long call can be tried as long as it holds 8245 but with extreme caution. 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.