CNX--BANK NIFTY- A TECHNICAL VIEW – 25-4-2016

CNX--BANK NIFTY

Closed at 16703.40 on 22-4-2016(Open-16641.05/High-16755.85/Low-16549.10)

Support:16648.30/16587.25/16349.70/16282.75/16205/16188/16141.65/16099.65/16080.55/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

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

It had a positive day today and closed with a gain of 66.25 points. It is showing good strength and could still move up from here, but the concerning thing is that, it is still below its threshold point of 16726 for the bear market, the gap it created yesterday is still intact and it may  make an attempt to fill the gap in next 2-3 days and if it does then it can come down to 16386 level, it had eight weeks of rise(which is a Fibonacci number) and lastly it did not cross yesterday high and almost made a double top at 16770, so it could still make a down move from here  before it moves further, if it fails to cross and sustain16770 level soon. Going down it will find support at 16526.55/16386/16282.75/16188/16011.   

The range for the week starting from 25-4-2016 is between 16770---16011 and since it closed near the upper band of the range therefore it seems that it could give an upside break, but looking at the above observation it may give down move also. Therefore fresh long call should only be tried if it moves and sustain above 16770. In this regard please also note that moving up the range of 16726—16940--17068 is very tough range  and it will  get  strength and gather real  up momentum only if it gives sustained close above 16940, so handle your trade very carefully till it closes above it.

For 25-4-2016 watch the market for sometime before initiating trade. Long call can be tried but only if it moves and sustain above 16770 with a stop loss of below 16680 for a target of 16825/16940/17067. If it does not cross 16770 marks for reasonable time period  short call can also be tried near it with a stop loss of above 16840 for a target of 16700/16648/16587/16526/16386.  

Remark: - It is still in the long term bear trend since 4-1-2016. Long trade should only be attempted above 16770; similarly 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.