CNX--BANK NIFTY- A TECHNICAL VIEW FOR – 18-4-2016

CNX--BANK NIFTY

Closed at 16278.55 on 13-4-2016(Open-16087.95/High-16349.70/Low-16080.55)

Support:16205/16188/16141.65/16099.65/16080.55/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

Resistance:- 16282.75/16349.70/16587.25/16648.30/16727/16750/16824.05/16922.05/16932.50/17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

It had a vertical up move of around 900 points in last four days, it is showing strength but its relative strength in comparison with nifty is still weak. However the technical parameters indicates, that it could still move up from here but with an in between down correction. Therefore long call can be tried on dip at the proper levels. It is important to mention here that as it still looks good for continuing the up move but as per theory vertical rise may have a vertical fall also therefore long trade should be handled vigilantly and with extreme caution and care.  

 Today it opened with a huge up gap and steadily moved up during the day and closed near the high of the day with a gain of 398.35 points. It did not fill the gap it created today  therefore chances are that it may make an attempt to fill the gap in next 3-4 days and if it does then it could come down to 15958 level. Even if it does not fill the gap, it could give normal correction anytime because it had a vertical up move. But the bias is on the upside and overall technical indicators as of now points towards that this up move may continue provided it holds 15960 and finally 15762.20 levels. So long call can be tried in down correction but not below 15960.

Please note that moving up it will face huge resistance in the range of 16370—16590---16726--16940. If it moves and sustain above 16940 then the on-going up move may extend further  and will face next set of resistance in the range of 17080---17450. In view of the tough resistance range ahead it seems that the up journey from here may not be smooth but the trend is up as of now, therefore buy on dip strategy can be followed but not below 15960.

It is important to mention here that it is still in a long term bear market and it could only come out of it, if it moves above 16726 and sustain, so this point will act as a very stiff resistance.

For 18-4-2016 long call can be tried if it maintains above 16285 with a short stop loss of below 16240 but the authentic stop loss would be below 16080 , can add position if it moves above 16350 with a stop loss of below 16270 . Please see resistance points for targets.   

Remark: - It is already in the long term bear trend since 4-1-2016. Long call can still be tried as suggested above but with 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.