CNX--BANK NIFTY- A TECHNICAL VIEW – 11-5-2016

CNX--BANK NIFTY

Closed at 16784.95 on 10-5-2016(Open-16710.05/High-16812.20/Low-16613.90)

Support: 16750/16726/16648.30/16587.25/16526/16386/16349/16282.75/16205/16188/16141.65/16099.65/16080.55/16011/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

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

After yesterdays huge up move it gave a small follow up rise today and crossed its last long term moving average at 16776(it changes every day) and the recent top of 16795 on the line chart intra day but closed within it. The technical setup is o.k. therefore it seems that this rally may continue for some time. But since it is still making lower top and bottom on the line chart therefore buy on dip strategy may not be safe till it closes above 16795. It is therefore suggested to try long trade only above 16813 on 11-5-2016.  I once again repeat that it will gather good up momentum if it gives sustained close above 16776(it changes every day) & 16795(see my post for 10-5-2016) else rally fizzle out fear will  be there and here it is very much alive now because it has not closed above its recent top of 16975 on the line chart. However the bias is on the upside now and overall it is showing strength, therefore  long trade can be tried but with caution and short trade should be avoided for now.

                                  TRADING OPTION FOR-11-5-2016

1. Long trade can be tried if it maintains above 16813 but not below it for a target of 16933/17030, please get alerted below 16780 and may exit trade below 16700 but the authentic stop loss would be below 16600 which please note. 

  

 Remark: - Long call can be tried as suggested above. 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.