CNX--BANK NIFTY
Closed at 16281 on 5-5-2016(Open-16292.40/High-16398.25/Low-16193.30)
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.
As perceived it gave an up move but it was
feeble in nature and showed gross weakness, however it closed with a meager
gain of 6.75 points. The overall technical setup is weak and indicates that it
could fall further from here,
so it seems that today’s short up move is not going to last long and may fizzle
out tomorrow itself or may be a day later. Therefore long call should be
completely avoided till visible sign of correction completion emerges, instead
sell on rise strategy should be followed till it closes above 16795 as of now
but avoid short trade above 16528 on 6-5-2016.
I once again
reiterate (see my post for 5-5-2016) that it has bed of supports in the range
of 16242---16071--15950, (it changes every day) therefore it seems slightly
difficult to break this range easily, but certain technical indicators as of
now indicates that this range may be taken out in coming days/weeks. It is
therefore suggested to handle your trade very carefully in the said range. It
is also important to mention here that sustained close below 15950 level may
accelerate the fall. The bias is on the downside now.
TRADING OPTION FOR-6-5-2016
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. Sell
if it moves and sustain below 16270 and below 16237 for sure 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. 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.