Commodities

Tuesday, 5 April 2016

CNX--BANK NIFTY- A TECHNICAL VIEW – 6-4-2016

CNX--BANK NIFTY

Closed at 15695 on 5-4-2016(Open-16127.45/High-16147.15/Low-15659.75)

Support:-15682.65/15522/15178.30/14989.40/14761/14754.

Resistance:- 15762.20/15967.85/16188.05/16282.75/16587.25/16648.30/16670.55/16727/16741/16824.05/16922.05/16932.50/17067.45.

I had mentioned in my last post (see my post for  4-4-16) that it may rise from here but the up journey may not be smooth and today it corrected sharply and closed with a loss of 495.60 points. The way it corrected today further fall looks certain and some technical indicators also corroborates it. Furthermore today it closed below one of its most critical point of 15762.20 for the year 2016, which is bad sign and if it sustain below this level fall may accelerate, therefore it is suggested to avoid long call till it closes above 15762.20 levels again and sustain. Instead short call can be attempted if it maintains below this mark.

  For 6-4-2016 avoid long call now instead short call can be tried on the rise but below 15762 or below 15650 with a stop loss of above 15850 and 15780 respectively. Please see support points for targets.      

Remark: - It is already in the long term bear trend since 4-1-2016 and in view of its close below the critical point of 15762.20 long calls should be avoided till it closes above it again and sustain for at least 2-3 days. Short call 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 pointsDO 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.





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