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

CNX--BANK NIFTY

Closed at 16174.90 on 1-4-2016(Open-16099.65/High-16235.80/Low-16020.60)

Support:-16141.65/16099.65/15967/15762.20/15682.65/15522.

Resistance:- 16282.75/16587.25/16648.30/16670.55/16727/16741/16824.05/16922.05/16932.50/17067.45.

As expected it showed strength and moved up and crossed one of its most important point of 15762.20 for the year 2016(see my post for 18-3-2016) and reasonably above it now. It is still showing strength and technical setup also look good therefore it may further move up from here as long as it holds 15762.20 but the up journey may not be smooth as it will face stiff resistance from its long term moving average which are placed at 16258—16342—16402—16552--16719—16865--17011 (it changes every day) for 4-4-2016 and from its most important resistance points at 16727,16922.20 & 16932.50 for the year 2016, if it move above these points and sustain then further good up move can be expected. Similarly it will find good support moving down from its long term moving average at 16050(it changes every day), then from its one of the most critical point of 15762.20 for the year 2016. Please note that sustained break below 15762.20 may begin fresh down move. The bias is on the upside therefore long call can be tried on dip near 16050 and then near 15762.20 but not below this mark for sure. It would be safe try long call above 16180. Long call should be handled with caution in view of the tough resistance range ahead.

It is important to mention here that it is still in long term bear trend and can only come out of it if it moves above 16727 and sustain which may be kept in mind.

For 4-4-2016 long call can be tried if it sustains above 16180 with a stop loss of below 16000 and fresh long position can be added if it sustains above 16283 with a stop loss of below 16090 for added position or try long call on dip near 16099 and then near 15762.20 with a stop loss of below 16000 and 15650 respectively. Please see resistance points for targets.     

Remark: - It is still in long term bear trend since 4-1-2016. Long call can be tried above 16180 or on dip near 16099 but with extreme 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.