CNX--BANK NIFTY
Closed at 16543 on 2-5-2016(Open-16614/High-16674.15/Low-16519.55)
Support: 16526/16386/16349.70/16282.75/16205/16188/16141.65/16099.65/16080.55/16011/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.
Resistance: 16587.25/16648.30/16726/16750/16824.05/16922.05/16932.50 - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.
It exhibited gross weakness today, it
made lower top and broken recent bottom and is in the making of lower bottom on
the line chart, it closed below its bear market threshold point of 16726 and it
is running below its short term and some of its long term moving averages also
which is a bad sign and indicates that the on-going down move may deepen
further from here. Furthermore since it is making lower top and bottom
therefore as of now it is clearly a sell on the rise market till it closes
above 16795, but one should be alert in short trade above it. Please note that even
if it closes above 16795 it will gather momentum only once it crosses the range
of 16850----16940---17030---17068. In view of the above observation long trade
should be avoided below 16850. Moving down it will find support from its long
term moving averages at 16385/16240/16100/15960 and from its Fibonacci
retracement points at 16422/16234/16046/15815. It may stage a relief rally from
any of these points, so watch out.
Please note that the range for the
on-going week is between 17030—16526. It did break the lower band of the range today but managed to
close above it. Please note that if it breaks the lower band of 16526 again and
sustain then long trade should be avoided for the entire week, instead short
call should be tried for sure.
TRADING OPTION FOR-3-5-2016
1. Sell on the rise but not above 16795
with a stop loss of above 16850.
3. Sell below 16526 for sure with a stop
loss of above 16630 for a target of 16386/16349/16282/16205.
Remark: - Since
it is making lower top and bottom on the line chart long trade is ruled out for
now, instead short call can be tried as suggested above. Please initiate your
trade after watching the market for at least 30-45 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.
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Thank you for sharing your views.