Wednesday, 18 May 2016

CNX--BANK NIFTY -A TECHNICAL VIEW FOR—19-5-2016

CNX--BANK NIFTY

Closed at 16728.95 on 18-5-2016(Open-16671.70/High-16759.05/Low-16556.60)

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


After two days of volatile movement on 17th & 18th   the on-going up trend still seems to be in place as long as it holds 16186 and finally 15959(it changes every day) levels on the closing basis (See my post for 16-5-2016). Please note that sustained close below 16431.65 will be the first signal of the end of this up move and break and sustained close below 16186 will be a potential indication of the end of this up move.

It is making lower top and bottom on the line chart so it is in the correction mode now and it may move down further from here, furthermore it could not cross its recent top of 17029.85 in last nine trading sessions which indicate some weakness in it. But since the overall technical setup looks o.k. now therefore long call can be attempted on decline in the strong support range of 16357—16186 but not below 16186 or long call can  be attempted if  it moves and sustains  above 16765. Please note that moving up it will face huge resistance at 16903/16962/17029.85/17067.45 and it will regain the up momentum only if it gives sustained close above 17067.45 which may please be noted. It is range bound now therefore both long and short side trade can be attempted depending on the daily price movement but any side trade should be handled with extreme caution.



                           TRADING OPTION FOR-19-5-2016

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. Long call can be tried above if it maintains above 16765 with a stop loss of below 16700.

3.  Can try sell call if it sustains below 16700 with a stop loss of above 16765 for a target for 16614/16574/16482/16357/16186 


 Remark: - Since it is range bound now, one can try both side trades depending on the price movement. 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. Bank nifty is performing well from last few days remarking continuous upward trend. Very helping trading strategies mentioned here. For long term profitability and good returns use stock tipsrecommended by epic research. It has always benefited me.

    ReplyDelete

Thank you for sharing your views.