CNX--BANK NIFTY
Closed at 17887.70 on 9-6-2016(Open-17955.80/High-17986.15/Low-17801.55)
Support: 17762.05/17719/17670.85/17502.45/17498.35/17246.55/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/1601115762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.
Resistance: 18029.05/18250/18580.65/18662/19030.
As perceived (see my post for
8-6-2016) it corrected today and closed with a loss of 59.10 points. But it is
still not showing desired weakness for a reasonable down correction after the
good up move. Although its looks better in comparison with nifty but today’s
move gave an alert signal that it may witness further down correction from here
before it looks up again. Therefore it is suggested to avoid long call now and should
only be attempted if it moves and sustain above 17950 or near 17670 but not
below this. Please note that attempting long call near 17670 could be a risky proposition
at this point of time.
Please note that close below 17670
will signal the end of the on-going up move and then it may correct further
before moving up again. Going down it will find support at
17752/17675/17600/17500/17400/17350, it may bounce back from any of these
points but if it moves below 17350 and sustain then it can trigger fresh fall
which can drag it down to 17184/16991/16753.
It is important to mention here that
break below 17067 & 17029 and finally 16920 will threaten the uptrend,
therefore long call should be avoided below 17029 and below 16920 for sure. The
bias is up now but it can severely correct from here therefore I once again
repeat that long call should only be tried if it maintains above 17950 or
around the range of 17067--16940.
TRADING OPTION FOR-10-6-2016
1. Long call can be tried if it sustain
above 17950 with a stop loss of below 17850 for a target of 18045/18250.
2. Long call can be tried on dip within the range
of 17067—16940 with a strict stop loss of below 16880.
3. Contrarian trader can try short call
for correction only if it moves and sustains below 17880 with a stop loss of
above 17960 for a target of 17762/17670/17587/17500/17350/17157/17067/17029. It
could be a risky trade but worth trying.
4. Aggressive trader can try short call on
the rise near 17950 but not above it with a stop loss of above 18010. It could
be a highly risky trade but worth trying if one get a chance.
Remark: - The trend is up but long call should only be
attempted if it moves and sustain above 17950. 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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