CNX--BANK NIFTY- A TECHNICAL VIEW - 16-3-2016

CNX--BANK NIFTY

Closed at 15326.80 on 15-3-2016(Open-15310.45/High-15386.85/Low-15268.10)

Support:-15130.35/14989/14858.50/14754.65/14709.10/14602.25/14467.15/14338.65/13892.10/13810.60/13519.90/ 13407.25/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 15367.90/15451.75/15565.50/15682.65/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45.

It opened on a flat note and moved in a very short range throughout the day and closed with a meager gain of 49 points. Today’s short range movement indicates that it is bracing for a big move on the either side in coming day or two, today’s bar on the chart is pointing towards a possible down move. However  it is within its  critical range now which is between 15451.75—14989.40 (see my post for 14-6-16),furthermore it  has higher top and bottoms on the line chart therefore chances are that it could still move up as long as it holds 15140 on the closing basis. But it will show good strength once it gives sustained upside breakout from its critical range for now i.e. above 15451.75. In view of the above it is suggested to try long call above 15451.75 but it can still be tried if it maintains above 15355 but with extreme caution. Moving up it will face resistance at 15367/15451.75/15565.50/15682.65/15762.20. Similarly going down it will find support at 15140/14989.40/14969/14761/14754/14670. Please note that it will gain strong foothold once it moves above 15762.20 and sustain.

For 16-3-2016 in view of short trading range today please exercise extreme caution in first hour of trade. Long call can be tried if it moves and sustain above 15355 with a stop loss of below 15220 for a target of 15367.90/15451.75/15577/15682.65/15762.20. Similarly short call can also be tried if it maintains below 15220 for some time with a stop loss of above 15310 and add on further position below 15140 with a stop loss of above 15220 for a target of 15000/14989/14969/14761.

Remark:-It is in long term bear trend since 4-1-2016. The fresh long call should only be attempted if it sustains above 15355 and short call can also be tried as suggested above.

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.