CNX--BANK NIFTY- A TECHNICAL VIEW – 21-4-2016

CNX--BANK NIFTY

Closed at 16349.70 on 20-4-2016(Open-16299.50/High-16386.35/Low-16160.55)

Support:16349.70/16282.75/16205/16188/16141.65/16099.65/16080.55/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

Resistance:- 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 a day’s down correction on the closing basis it moved up today, it is making higher top and bottom on the line chart which is good sign. The technical setup looks o.k. for further rise therefore it is a buy on dip market now  and the on-going up move may remain intact as long as it holds 15960 and finally 15762.20 levels , but moving up it will face huge 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. It is therefore suggested to structure your trade keeping the above resistance range in mind to handle your trade better.

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 21-4-2016 watch the market for sometime before initiating  trade. Long call can be tried if it maintains above 16350 with a short stop loss of below 16270 but the authentic stop loss would be below 16080 or buy on dip but not below 16160 with a stop loss of below 16080. 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.