CNX-NIFTY-A TECHNICAL VIEW FOR—4-7-2016

CNX-NIFTY

Closed at 8328.35 on 1-7-2016 (Open-8313.05/High-8356.75/Low-8308.65)

Support: -8308.15/8295/8243/8212/8153.25/8146/8134/8063.90/7992/ 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: -8336.30/8356.75//8375/8489.55/8530/8550-8600/ 8621.

                      

It has been vertically moving up for last five days and with up gap for last three days which is slightly concerning, however it almost covered the today’s gap but the earlier two gaps are still intact. So if it makes an attempt to fill the earlier gaps in next 2-3 days time which is theoretically still possible then it could come down to 8212 and then 8146 level. Furthermore also note that vertical rise may have a vertical fall too, but since it is exhibiting strength it can still move up from here for another 2-3 days before it could finally correct. Although technically it looks good but in wake of its vertical rise with unfilled gaps chances are that it could correct latest by 8^th of July-2016 or earlier.

Moving up it will face resistance at 8336.30/8375-85/8450. It is therefore suggested to be extra careful in fresh long trades around the aforesaid range; however long trades can be attempted above 8337 but with caution. It is not indicating to attempt fresh short call here but it would be worth trying if it consistently starts trading below 8300 with a stop loss of above 8340 and for existing short trade one can square trade above 8340 but reinstate your trade if it sustains below 8300.     

TRADING OPTION FOR-4-7-2016

1. Long call can be tried above 8337 with a stop loss of below 8300 for a target of 8357/8375/8385/8425.

2. Long call can be tried on decline but not below 8175 with a stop loss of below 8140. Keep your long position light if it consistently starts trading below 8243.

3. Short call can be tried if it moves and sustain below 8300 with a stop loss of above 8340 for a target of 8243/8212/8153/8146/8134. Short trade is suggested for taking advantage of possible correction only.  It could be a risky trade but worth trying.

Remark: - The trend is up. But since it is vertically moving up leaving gaps also which is an alert sign that correction may creep in anytime, however long call can still be attempted as suggested above but with due caution and existing short call should be managed as mentioned in the above paragraph and fresh short can also be attempted 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.