CNX--BANK NIFTY
Closed at 15530.75 on 7-4-2016(Open-15668.95/High-15726.60/Low-15458.05)
Support: - 15522/15178.30/14989.40/14761/14754.
Resistance:- 15682.65/15762.20/15967.85/16188.05/16282.75/16587.25/16648.30/16670.55/16727/16741/16824.05/16922.05/16932.50/17067.45.
It is not showing any sign of
strength and continuously moving down and most importantly it closed below its
critical point of 15762.20 for the year 2016 for the 3rd consecutive
day today which is a very bad sign and indicates that the on-going fall may
accelerate in coming days if it remains below it, chances of which looks very
bright because certain technical indicators also points towards that, that it
may seek lower levels in coming days/weeks (see my post for 6&7th
April-2016). Therefore long call should be avoided.
Please note that the up move which started
from the level of 13407.25 on 29-2-2016 seems to be over for sure and it is in
down move now therefore avoid long call completely till it closes above
15762.20 and sustain for at least 2-3 days. So it is strongly suggested to
follow sell on the rise strategy till it closes above 15762.20 and sustain.
For 8-4-2016 short call can be tried
on the rise at proper points but not above 15762 or sell below 15522 with a stop loss of above 15850
and 15640 respectively. Please see support points for down targets.
Remark: - It is already
in the long term bear trend since 4-1-2016 and in view of its 3rd consecutive close
below the critical point of 15762.20 long calls should be completely 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 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.
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Thank you for sharing your views.