CNX--BANK NIFTY
Closed at 16481.45 on 20-5-2016(Open-16600.80/High-16623.20/Low-16455.40)
Support: 16431.65/16282.75/16188/16186.25/16141.65/16099.65/1601115762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.
Resistance:16587.25/16648.30/16726/16795/16903.35/16922.05/16932.50/16962/17029.85/17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.
It has ended the week on
a negative note and near the low of the week, which exhibits weakness. It is
making lower top and bottom on the line chart and made lower top on the bar
chart, furthermore it is running below its short term moving averages and some
of its long term moving averages also which indicates that the corrective down
move may continue further and if it fails to hold the recent bottom of 16186 on
the bar chart then the on-going uptrend may end and a fresh down move may begin.
The bias is down as of now.
It has slightly weak
technical setup at present and it is in
correction mode also, therefore short call can still be tried below 16431 but
with extreme caution because it has very strong support in the range of 16327--16186—16095--15960.
Therefore short call if initiated should be exited at proper point within the
mentioned range and long call can be tried preferably at the lower end of the
range or stay neutral till it gives some visible indication of moving up. Once
exited fresh short trade should only be tried if it moves and sustains below 15950(it
changes every day). Similarly long trade if initiated should be exited below 15950.
It is important to
mention here that break and sustained close below 15762.20 will trigger fresh
and accelerated fall which may please be noted. Looking at certain technical parameters
as of now it is likely to hit 16274 or may be seek much lower levels in coming
days so one should be very careful in attempting long trade in the above
mentioned range.
TRADING OPTION
FOR-23-5-2016
1. Sell below 16431 with a stop loss of
above 16490 for a target of 16369/16274/16186/16095/15960.
2. Long trade can be attempted in the range
of 16327—16186 but not below 16186 with a stop loss of below 16080. It could be
a risky trade but worth trying, so handle it very cautiously.
Remark: - Both side trades can be tried depending on the price
movement. So 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.
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