CNX--BANK NIFTY- A TECHNICAL VIEW – 28-4-2016

CNX--BANK NIFTY

Closed at 16872.95 on 27-4-2016(Open-16869.35/High-16995/Low-16827.35)

Support: 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:16922.05/16932.50 - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

It could not sustain the close above its critical points of 16922.20 & 16932.50 for the year 2016 even for a day and closed below it, which is disturbing, today’s move showed some sign of fatigue or it may be indicating that this on-going up rally is near its end. However technically it is still looking o.k. so if it could still move above these points in a day or two and crosses 17068 mark  then it may hit 17250---17498 levels in coming days, else this rally may end here. It is looking slightly shaky at this point of time, therefore now the fresh long trade can be tried if it moves and sustain above 17030, but it would be safe to try long call above 17068 only. Since it has shown some weakness today and if it fails to move above 17030 then short call can also be attempted near it with caution.

TRADING OPTION FOR-28-4-2016

1. Long call can be tried if it moves and sustain above 17030 with a stop loss of below 16910 for a target of 17174.70/17246.55/17498.35. But it would be safe to try long call if it moves and sustain above 17068 with a stop loss of below 16920.   

2. Aggressive day trader can try long call if it maintains above 16935 with a stop loss of below 16860, but it could be a risky trade mind you.

3. If it fails to cross 17030 level for reasonable period of time then short call can be tried near it but not above it with a stop loss of above 17080 for a target of 16932/16922/16872/16824/16770/16726/16.

4. Short call can also be tried if it sustain below 16820 with a stop loss of above 16935 for a target of 16770/16726/16678/16648/16587.

Remark: - It is showing sign of exhaustion therefore fresh long call should only be attempted above 17030. Short call seems a safer bet and can 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.