Saturday, 14 May 2016

CNX--BANK NIFTY- A TECHNICAL VIEW – 16-5-2016

CNX--BANK NIFTY

Closed at 16716.90 on 13-5-2016(Open-16891.70/High-16891.70/Low-16594.55)

Support: 16750/16726/16648.30/16587.25/16518.75/16205/16188/16186.25/16141.65/16099.65/16080.55/16011/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.

Resistance:16726/16750/16922.05/16932.50/16962/ - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

It had a down day today and it closed with a loss of 206.79 points.    Please note that as long as it holds 16186.25 and finally 15955(it changes every day) levels on the closing basis the up-trend may be in place but in between down correction may happen as it is happening now. It has established a lower top of 16962 on the bar chart recently and broken the recent bottom of 16754.45 on the line chart, so it is definitely in correction mode now and may move down further from here before it resumes the up move again. Going down it will find good support at 16665/16574/16482/16357/16186, it may bounce back from any of these points, but break below 16357 may take it down to 16186 and break and close below 16186 will be a potential indication of the end of this up move. The overall bias is slightly tilted towards upside as of now, so long call can be attempted in down move in the range of 16357—16186 but not below 16186. Since it is correction mode now one can take advantage of the expected fall also therefore sell call can be tried on the rise but not above 16925 or can sell below 16700, but one should be quick and swift in handling short trade because overall technical setup is still not that bad as of now for the up move to continue except for its recent lower top formation of 16962 on the bar chart which is only the concerning thing. Please note that it will regain up momentum only if it moves and sustains above 17030 else danger of this up move fizzling out will be there which may be kept in mind.   

                                 TRADING OPTION FOR-16-5-2016

1. Long trade can be attempted in the range of 16357—16186 but not below 16186 with a stop loss of below 16180. It could be a risky trade but worth trying, so handle it very cautiously.

2. Since it is in correction mode short call can be tried on the rise at proper points but not above 16950 with a stop loss of above 17030.
 
3. Sell below 16700 with a stop loss of above 16785 for a target of 16574/16482/16357/16186 

 Remark: - Both side trades can be tried depending on the price movement. So take your trading call as suggested above. 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.





1 comment:

  1. Even i believe its not worthed to trade without stop less as it increases our risk and no one is having any control over the market so it is must. Targets on which we trading should be according to current market needs. Epic research offers accurate stock tips.

    ReplyDelete

Thank you for sharing your views.