CNX--BANK NIFTY- A TECHNICAL VIEW – 20-4-2016

CNX--BANK NIFTY

Closed at 16222.70 on 18-4-2016(Open-16328.70/High-16330.55/Low-16011.90)

Support:16205/16188/16141.65/16099.65/16080.55/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

Resistance:- 16282.75/16349.70/16587.25/16648.30/16727/16750/16824.05/16922.05/16932.50/17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

After four days of vertical rise it took a breather today, it may correct further from here but as long as it holds 15960 and finally 15762.20 on the closing basis the on-going up move may be intact. Therefore long call can be tried on decline near 15960 and then near 15762.20 with proper stop losses or above 16283. But since it corrected today and correction may continue further therefore to be on the safe side long call should only be tried if it moves and sustain above 16283. Moving up it will face stiff resistance in the range of 16370—16590---16726--16940. If it moves and sustain above 16940 then the on-going up move may extend further. The short term technical setup still looks good so it may rise from here after correction.  

It is important to mention here that it is still in a long term bear market and it could only come out of it, if it moves above 16726 and sustain, so this point will act as a very stiff resistance.

For 20-4-2016 long call can be tried if it maintains above 16283 with a short stop loss of below 16200 but the authentic stop loss would be below 16080 , can add position if it moves above 16350 with a stop loss of below 16270 . Please see resistance points for targets.  

Remark: - It is already in the long term bear trend since 4-1-2016. But long call can be tried as suggested above but with caution.

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.