CNX--BANK NIFTY-A TECHNICAL VIEW FOR—1-7-2016

CNX--BANK NIFTY

Closed at 17935.40 on 30-6-2016(Open-17825.30/High-17975.05/Low-17795.05)

Support:17935.40/17907.50/17670/17636/ 17527/17518/17425/17350/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/16011/15762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.

Resistance:17943.65/17950/ 18029.05/18051.50/18278/18580.65/18662/19030.

It opened with an up gap and did not fill the gap and moved up and closed with a gain of 245.50 points. So if it makes an attempt to fill this gap in next 3-4 days time which is theoretically possible and if it does then it can come down to 17728 which may be kept in mind.

It gave a robust up move today and closed above its all short term moving averages, furthermore it also closed above its recent top of 17892.45 on the line chart and crossed recent top of 17943.50 on the bar chart, which is a good sign, but it is yet to cross and close above 18045(see my post for 30-6-2016). However looking at today’s move   long call can be attempted above 17980 or on decline but not below 17607 and short call should be avoided now and existing short call should be squared off if it sustains above 17980 or on decline near 17725 and then near 17625. I once again repeat that only sustained close above 18045 will see it regain its lost momentum.

 Today’s move indicate  that it is ready for an up move again, but it is important to mention here that today was not a normal day for the market because it was June-2016 series settlement day and monthly close for the market . In view of this and above observation it is suggested to watch the market movement for at least 3-4 trading session to see whether today’s rise is sustainable or not.  Therefore it is suggested to  handle your trade with extreme caution now.

  

TRADING OPTION FOR-1-7-2016

1. Long call can be tried above 17980 with a stop loss of below 17900 for a target of 18051.50/18188/18313.

2. Long call can be tried on decline but not below 17607 with a stop loss of below 17518.

3. Short call can be tried if it moves and sustain below 17600 with a stop loss of above 17730 for a target of 17527/17425/17350/17200/17067.

Remark: - The trend is up. Today’s move indicates that correction may be over but since it was June-16 series settlement day and monthly close too, therefore watch the market for 3-4 days for confirmation. However long call can be attempted as suggested above and fresh short call should be avoided for now. 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.