CNX--BANK NIFTY- A TECHNICAL VIEW – 27-4-2016

CNX--BANK NIFTY

Closed at 17002.55 on 26-4-2016(Open-16647.75/High-17029.85/Low-16572)

Support: 16932.50//16922.05/16824.05/16750/16727/16648.30/16587.25/16526/16386/16349.70/16282.75/16205/16188/16141.65/16099.65/16080.55/16011/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

Resistance: - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

It gave a robust up move today and crossed it bear market threshold point of 16726, double top of 16770 and most importantly its critical points of 16922.20 & 16932.50 for the year 2016 for the first time in this year. It is exhibiting tremendous strength therefore as long as it holds 16922.20 on the closing basis the up- trend seems o.k. Please note that the sustained close below 16922.20 will signal danger bell and close below 16678.85 as of now may end this on-going up move. Therefore it is suggested to avoid long call below 16922.20. It is still a buy on dip market but below 16678 for sure, but to be on the safe side it is advised to avoid long call below 16922.20.

TRADING OPTION FOR-27-4-2016

1. Long call can be tried if it moves and sustain above 17068 with a stop loss of below 16910 for a target of 17174.70/17246.55/17498.35.

2. Short call can be attempted if it sustain below 16900 with a stop loss of above 17010 for a target of 16932/16922/16830/16770/16678. Although technical setup does not permit a clear sell call here but if it sustains below it critical point of 16922.20 for some time it is worth trying.

Remark: - It gave a robust move today and closed near the high of the day therefore one should avoid sell call here. Long call can be tried if it moves and sustain above 17068.

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.