CNX--BANK NIFTY
Closed at 16388.70 on 3-5-2016(Open-16570.75/High-16719.40/Low-16358.40)
Support: 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: 16526/16587.25/16648.30/16726/16750/16824.05/16922.05/16932.50 - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.
It had a hugely volatile move today
but at the end of the day, it showed extreme weakness. I once again repeat that it has fallen inside its down trend line,
making lower top & bottom and running below its all short term moving
averages and breaking its long term moving average layer every day (see my post
for 3-4-2016) and the last such average is being at 15960(it changes every
day). Therefore in all probability it is likely to go down further from here,
however in between short up move cannot be ruled out. It is therefore
definitely a sell on the rise market now till it closes above 16795 as of now. Moving
down it will find support from its long term moving averages at 16385/16240/16100/15960 (it changes every day) and from its Fibonacci retracement point’s
at 16234/16046/15815. It may stage a relief rally from any of these points, so be
vigilant. Long trade should be avoided
till it gives visible indication of correction completion. Please note that It
has a strong bed of support in the range of 16245—16220, so it may take a
breather here before falling further, so be watchful. The bias is down for sure
as of now.
Please note that the range for the
on-going week is between 17030—16526. Since it is has broken the range downside therefore long trade
is ruled out and short call can be safely tried below 16526. The short range
for the day is 16526----16220, so structure your trade keeping this range in
mind.
TRADING OPTION FOR-4-5-2016
1. Sell on the rise but not above 16795
with a stop loss of above 16840. The
possible sell point could be at 16526/16614/16685/16795.
2. Sell below 16358 with a stop loss of
above 16410 for a target of 16349/16282/16205. It could be a risky trade.
Remark: - It
is surely a sell on the rise market now; therefore long call should be avoided.
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.