CNX--BANK NIFTY- A TECHNICAL VIEW FOR – 11-4-2016

CNX--BANK NIFTY

Closed at 15568.35 on 8-4-2016(Open-15519.30/High-15642.70/Low-15483.05)

Support: - 15522/15458.05/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

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.

After three days of fall it took a breather today and  it may inch up further from here but not likely to cross it critical point of 15762.20 on the closing basis as it has closed well below it for the 4^th consecutive day. As you are already aware that it is clearly sell on the rise market now (see my earlier post) therefore long call should be avoided and not to be tried even for short up moves in between because it can trap you at higher levels. Furthermore it is well below its all long term moving averages, few technical indicators are also pointing towards a downside move, it has broken its recent bottom on the line chart and it is also running below its short term moving averages and certain short term moving averages have given negative crossover also which is not a good sign, therefore overall technical setup indicates continuation of the down move. In view of the above long call should be completely avoided till it closes above 15762.20 and sustain for at least 3-4 days, so till then sell on the rise strategy should be followed but not above 15762.20  or  sell if it maintains below 15522 for some time. It would be safe to try sell call below 15522 and below 15450 for sure.  

Please note that moving down it will find support from its Fibonacci retracement point at 15483/15294/15184/14845/14505 and from its medium term moving averages which is in the range of 15450—15050, so it is extremely good support area, however looking at overall technical parameters it seems that it is very likely to hit 15300-15150 range in coming days.

For 11-4-2016 short call can be tried on the rise at proper points but not above 15762 with a stop loss of above 15850 or sell below 15522 with a stop loss of above 15640 and can add on short position below 15450 with a stop loss of above 15540 for a target of 15312/15150/15050.

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