CNX-NIFTY
Closed at 8323.20 on 8-7-2016 (Open-8350/High-8353.20/Low-8287.55)
Support: -8313.05/8308.15/8294.85/8243/8212/8153.25/8146/8134/8063.90/7992/
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: -8336.30/8338/8375/8398.45/8425/8467/8489.55/8504/8530/8550-8600/
8621.
It moved in a short range of 111.45 points
during the week ended on 8-7-2016 after the robust rise in the previous week. Since
it had short range movement this week it may be bracing for a big move on the
either side in next 2-3 days. The overall technical structure is looking good as
of now, so the chance of moving up looks reasonably good, but it made lower top
and bottom on the line chart recently, furthermore it has been giving whip saw
movement around its critical level of 8336.30 and not been able to sustain
above it on the closing basis which is slightly concerning and it remains below
it then it can correct further from here. Therefore
please note that sustained close above 8336.30 is necessary for this up momentum
to continue, it is a bench mark point
for the long trade but as long as it holds 8243 level on the closing basis the
up move may be in place. It is therefore suggested to attempt long call
above 8336.30 or near but not below 8243 because sustained break below it can
drag it down to much lower levels. Since it is making lower top and bottom on
the line chart therefore short call can also be attempted but below 8323 and
existing short call should be squared above 8340 or short call can safely be
attempted below 8287 and below 8243 for sure. Going up it will find resistance
at 8398/8406/8425/8467.
It is important to mention here that the
range for the week starting from 11-7-2016 is between 8287---8399 and breakout
on either side will decide which way it
will move .It is therefore suggested to structure your trade keeping the said
range in mind.
TRADING OPTION FOR-11-7-2016
1. Aggressive trader can try long call above 8340 with
a stop loss of below 8287 for a target of 8399/8406/8425/8460.
2. Short call can be tried if it consistently trades
below 8323 with a stop loss of above 8340.It could be a risky trade.
3. Short call can safely be tried if it moves and
sustain below 8287 and below 8243 for sure with a stop loss of above 8340 and 8300
respectively for a target of 8243/8212/8153/8146/8134.
Remark: - The trend is up. But since it is giving whip saw
movement around its critical level of 8336.30 therefore long trades should only
be attempted above 8340. 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.
Nifty opened at 8350.00 marginally UP by around 12 points over Thursday. Similar to Thursday, right from the initial moments Nifty showed lethargic movements, that moved down throughout the session. For the whole day Nifty moved in a tight range of 36 points and could not hold the level of 8350 on closing basis. Get daily reports by following epic research.
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