Thursday, 17 March 2016

CNX--BANK NIFTY- A TECHNICAL VIEW - 18-3-2016

CNX--BANK NIFTY

Closed at 15444 on 16-3-2016(Open-15622.30/High-15704.75/Low-15312.50)

Support:-15367.90/15130.35/14989/14858.50/14754.65/14709.10/14602.25/14467.15/14338.65/13892.10/13810.60/13519.90/ 13407.25/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 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 with a huge up gap and went up further and remained in the positive range almost throughout the day but in last 45 minutes of trade it slipped down and went on to break the   previous day’s close and ended near the low of the day in real time but eventually even after adjustment it closed with a small loss of 17.70 points. Although  higher top and bottom on the line chart are still intact therefore as long as it holds 15146 on the closing basis it could still move up but today’s move was disturbing so caution should be exercised in long trade . It is therefore suggested that long call should only be tried if it move and maintains above 15465 and then near 15168 and not in between and avoid long trade completely below this mark. Moving up it will face resistance at 15565.50/15682.65/15762.20. Similarly going down it will find support at 15312.50/15178/15168/15146/15000/14989/14767—14754/14445. Please note that it will gain strong foothold once it closes above 15762.20 and sustain, it came pretty close to it today.

For 18-3-2016 long call can be tried if it moves and maintain above 15465 or else try near 15168 but not below 15168 levels for sure for a target of 15565.50/15682.65/15762.20. Please use self defined short stop losses with the help of support levels to manage your long trade effectively because the authentic stop loss for long trade would be below 15130. Short call can be attempted if it moves below 15146 and sustain with a stop loss of above 15230 but in view of today’s move aggressive day traders can try short call even if it maintains below 15300  with a stop loss of above 15462 for a target of 15178—146/15000/14989.

Remark:-It is in long term bear trend since 4-1-2016. Long call should only be attempted if it maintains above 15465 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 pointsDO 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.




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Thank you for sharing your views.