CNX--BANK NIFTY- A TECHNICAL VIEW – 29-4-2016

CNX--BANK NIFTY

Closed at 16716.90 on 28-4-2016(Open-16885.80/High-17023.35/Low-16692.70)

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

As perceived that it is showing sign of fatigue and exhaustion, it went down further today and closed with a loss of 156.04 points. It came below the bear market threshold point of 16726 also which is a bad sign. But as long as it holds 16678.85 on the closing basis, it could still make an attempt to move up, but looking at last two days move it seems slightly difficult to move up from here because there is huge resistance in the range of 16726—16940--17068. It did cross the range of 16726—16940 once two days back but could not sustain above it and slipped down, so now crossing it for the second time will be really difficult. It is therefore suggested to avoid fresh long call now and can try it only if it moves and sustain above 17030. However aggressive day trader can still try long trade above 16726 with a stop loss of below 16670 but it could be a risky trade. In wake of last two days move it is suggested and would be better and safe at this point of time to look for an opportunity to sell on the rise rather than trying long trade.   

                                  TRADING OPTION FOR-29-4-2016

1. Sell on the rise but not above 17030 with a stop loss of above 17080 and the possible sell points could be at 16858/16897/16950/17025.Please use self defined stop losses with the help of resistance point mentioned above for suggested sell points trade to manage your trade better.   

2. Sell below 16678 with a stop loss of above 16750 for a target of 16572/16526/16386.

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.