CNX--BANK NIFTY- A TECHNICAL VIEW – 10-5-2016

CNX--BANK NIFTY

Closed at 16686.10 on 9-5-2016(Open-16357/High-16712.90/Low-16357)

Support: 16648.30/16587.25/16526/16386/16349/16282.75/16205/16188/16141.65/16099.65/16080.55/16011/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

Resistance:16726/16750/16824.05/16922.05/16932.50 - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

As anticipated it gave an up move but it was a robust one which was not expected. It opened with a small up gap and it did not make an attempt to fill the gap and steadily moved up and closed near the high of the day with a huge gain of 389.50 points, which shows good strength. Please note that from the recent top of 17029.85 it took eight days to make a bottom at 16186.25 but it retraced more than 61.8% of the total fall in just one day, furthermore it decisively moved above its short term and long term moving averages except for one long term moving average which is at 16787(it changes every day), therefore today’s up rally seems to be an impulse move and if it is so than this rally may last for few more days and in this run it may surpass its recent top of 17029.85 provided it crosses its last long term moving average at 16787 and recent top of 16795 on the line chart and sustain otherwise this move  may end here also. Since it is still making lower top and bottom on the line chart till it crosses 16795, it is therefore suggested that long trade can only be tried above 16720. Avoid short call for now.

  

   TRADING OPTION FOR-10-5-2016

1. Long trade can be tried if it maintains above 16720 but not below it and get alerted below 16680 and exit trade below 16600 for a target of 16787/16795/16830/16935/17030.

2. It would be safe to try long call if it moves and sustain above 16795 with a stop loss of below 16700.

 Remark: - In view of today's robust up move long call can be tried as suggested above but it would be safe to try long call above 16795.Short call should be avoided now. Please initiate your trade after watching the market for at least 30 minutes.   

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.