CNX--BANK NIFTY
Closed at 16997.45 on 25-5-2016(Open-16665/High-17025.85/Low-16599.05)
Support: 16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/1601115762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.
Resistance:17029.85/17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.
As perceived it respected
its strong support range of 16357--16186 (see my earlier post)and staged a huge
pull back today and almost hit its recent top of 17029.85 it made on 26.4.2016,
it showed tremendous strength. The pull back was expected from the above range
but not of this intensity. Therefore it has to be seen how today rise shapes up
in coming 3-4 days time because if it fails to keep the up momentum on it can
have a similar kind of fall too, however as long as it holds 16368 on the
closing basis the on-going up move may be in place but please be alert in
existing long trade and avoid fresh long trade below 16922 and then below 16660(it
changes every day). Moving up it will face very stiff resistance in the range
of 17067.45—17175—17247—17500.
It is important to
mention here that 16922.20 and 16932.50 are one of the most critical points for
it for the year 2016 and it has closed reasonably above these points today. Please
note that sustained close above these points could keep the up momentum going. It
is therefore suggested to structure your trade keeping the above points
and aforesaid resistance range in mind.
TRADING OPTION
FOR-26-5-2016
1. Long call can be tried if it moves and
sustain above 17030 with a stop loss of below 16920 for a target of
17068/17250/17500.
2. Long trade can be tried on decline near
16922 but not below 16922 with a stop loss of below 16850.
3. Contrarian trader can
attempt sell trade also near its previous top of 17030 but not above it only if
it fails to cross it in first 2 hours of trade with a stop loss of above 17080.
It could be a highly risky trade but worth trying.
Remark: - In view of today's robust up move, it seems that the
down correction may be over. So long call can be tried as suggested above but
with caution. Please initiate your trade after watching the market for some
time.
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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