CNX-NIFTY-A TECHNICAL VIEW FOR—5-7-2016

CNX-NIFTY

Closed at 8370.70 on 4-7-2016 (Open-8376.25/High-8398.45/Low-8364.70)

Support: -8356.75/8336.30/8308.15/8295/8243/8212/8153.25/8146/8134/8063.90/7992/ 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: -8375/8398.45/8489.55/8530/8550-8600/ 8621.

                      

It opened with an up gap today also and it was the 4^th gap in a row and it has moved up unabated for the 6^th straight day. Although it almost filled the gap it created on 1-7-2016 the same day but technically the gap is still there so there are 4 gaps in a row with vertical rise which looks slightly scary and it seems that correction may creep in any moment, so be alert and watchful in long trade. Furthermore if it makes an attempt to fill the gap it can come down to 8308/8212/8146 levels which may please be noted. However technically it is looking good so it may move up further for another 1-2 days before it could correct. But please note that vertical rise may have a vertical fall therefore long trade should be handled with extreme care at this point of time.  It looks highly vulnerable for a correction any time so it is better to avoid long call today, however day trader can still try it if it move and sustain above 8377 avoid long call for sure below 8356.75. Short call can be attempted for taking advantage of expected down correction if it moves below 8356.75 and sustain.    

It is important to mention here that as long as it holds 8243 on the closing basis the uptrend may be in place but sustained break below this mark can take it for a deeper down correction. Please note that break below 8050 could be a warning signal for the uptrend and sustained break below 7938 may put a break on the uptrend which may please be noted.

TRADING OPTION FOR-5-7-2016

1. Long call can be tried above 8377 with a stop loss of below 8350 for a target of 8399/8425/8460. It could be a risky trade.

2. Long call can be tried on decline but not below 8243 with a stop loss of below 8175.

3. Short call can be tried if it moves and sustain below 8356.75 with a stop loss of above 8400 for a target of 8328/8313/8308/8243/8212/8153/8146/8134. 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, therefore it is suggested to avoid long call today instead short 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.