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

CNX-NIFTY

Closed at 8335.95 on 5-7-2016 (Open-8379.30/High-8381.45/Low-8319.95)

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: -8336.30/8356.75/8375/8398.45/8450/8489.55/8530/8550-8600/ 8621.

                      

It finally corrected today after 6 days of straight and vertical rise but the gap it created from 29-6-2016 to 1-7-2016 is still there and the concern is that if it makes an attempt to fill the gap it can come down to 8308.15/8212/8146 level, which is still possible theoretically. Overall it is showing strength as of now therefore it has to be seen in next 2-3 days time that how this correction culminates. Moving down it will find support at 8294.85 and then 8243.12 please note that sustained break below 8243.12 may take it down for a deeper correction and then it will find support at 8218/8162/8107/8038 and it may possibly bounce back from any of these points and then may continue the up move again.  Please note that sustained break below 8038 may drag it down further but as long as it holds the range of 7992--7938 the uptrend may be in place.   

 In view of the above observation it is suggested that long trade should only be tried if it moves and sustain above 8377 or buy on decline can also be attempted but do not increase long commitment if it starts trading below 8243 because then  it may seek support at much lower level of 8218/8162/8107/8038. Please note that it would be safe to try long call above 8377 or else try long call only if it gives visible indication of correction completion possibly at the levels mentioned above. To take advantage of down correction short call can be attempted if it moves and sustain below 8308. 

The overall trend is up as of now but this correction may be severe if it fails to close and sustain above 8336.30 soon  or if it break below 8243 and sustain,which may be kept in mind.     

     

   

TRADING OPTION FOR-7-7-2016

1. Long call can be tried above 8377 with a stop loss of below 8330 for a target of 8399/8425/8460.

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

3. Short call can be tried if it moves and sustain below 8308 with a stop loss of above 8357 for a target of 8287/8243/8212/8153/8146/8134. Short trade is suggested for taking advantage of down correction.  It could be a risky trade but worth trying.

  

Remark: - The trend is up. As expected it corrected today but since the gaps are still there it can correct further therefore it has to be seen how this correction gets completed. It is therefore suggested to try long call above 8377 only; short call can also be tried as suggested above for down correction move. 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.