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

CNX--BANK NIFTY

Closed at 16274.25 on 4-5-2016(Open-16320.20/High-16465.60/Low-16250.50)

Support: 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: 16282.75/16349.70/16386/16526/16587.25/16648.30/16726/16750/16824.05/16922.05/16932.50 - 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.

It had a down day today and it closed with a loss of 114.44 points. It is exhibiting gross weakness as it is making new low every day. Its overall technical setup is also weakening therefore further fall looks inevitable in coming days/weeks as of now. But it has huge support in the range of 16241---16145—16071--15950, furthermore it has almost retraced up to 50% level from the top & bottom of 17029.85 & 15440 and the point is at 16234, so before breaking this strong support range it may stage a short relief rally from here, but please note that in all probability it is likely to break the aforesaid range in coming days/weeks, because certain technical parameters are indicating it as of now. Therefore long trade should not be tried till it gives visible indication of correction completion. It is clearly a sell on the rise market now but not above 16528 on 5-5-2016 but one should be alert in short trade around the above mentioned support range. 

TRADING OPTION FOR-5-5-2016

1. Sell on the rise but not above 16528 with a stop loss of above 16620. The possible sell point could be at 16465/16526.   

2.  Can try sell trade if it maintains below 16240 with a stop loss of above 16300 for a target of 16205/16188/16149/16090. 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 and be alert in short trade in the range of 16241—16071 as it may stage a short relief rally from these level. 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.