CNX--BANK NIFTY -A TECHNICAL VIEW FOR—27-5-2016

CNX--BANK NIFTY

Closed at 17359.30 on 26-5-2016(Open-17037.60/High-17424.05/Low-16971.35)

Support: 17246.55/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/1601115762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.

Resistance:17498.35/17502.45/17719/18029.05/18226/18580.65.

It has vertically moved up in last two days giving a gain of more than 1000 points intra- day and more than 900 points on the closing basis, which is phenomenal. It is exhibiting tremendous strength but gap up open then unfilled gap and vertical rise is not good for a steady up move because vertical rise may have vertical fall too. In this context please note that it opened with an up gap in last two, it filled today gap but yesterdays gap still exist as it is which is concerning because if it makes an attempt to fill this gap in next 2-3 days time which is theoretically possible then it could come down to 16501.

Please note that technically it is looking good, but in view of last two days vertical rise trying long call here could be slightly risky because it may encounter profit booking here, furthermore moving up it will face resistance at 17503/17760 so the up journey may not be smooth from here, therefore long call can be tried on dip but not below 17029 as of now and finally avoid long call below 16920 for sure till it bounce back above 16940 and sustains.  

                           TRADING OPTION FOR-27-5-2016

1.  It is suggested to try long trade on decline but not below 17029.85 with a stop loss of below 17920.

2. Aggressive day trader can try long call if it moves and maintain above 17425 with a stop loss of below 17340 for a target of 17503/17650/17760. It could be a risky trade.

3. Since it had a vertical rise, contrarian trader can try sell trade in the range of 17650--17760 with a stop loss of above 17830 for a down correction as of now.

 Remark: - In view of two days vertical rise part profit should be booked in existing long trade now and on the rise and fresh long call should only be attempted on decline. 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.