CNX--BANK NIFTY -A TECHNICAL VIEW FOR—17-6-2016

CNX--BANK NIFTY

Closed at 17671.30 on 16-6-2016(Open-17827.60/High-17827.60/Low-17545.80)

Support: 17671/17620.90/17527.55/17498.35/17246.55/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/16011/15762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.

Resistance:17719/17828.60/17943.65/17950/ 18029.05/18051.50/18250/18580.65/18662/19030.

The up move of 15-6-2016 was completely retraced today in fact much beyond that which speaks of weakness in it. Furthermore it is making lower top & bottom on the line chart and made lower top of 17943.65 on the bar chart also but yet to make lower bottom. It still seems to be sell on the rise market but the silver lining is that its recent bottom of  17527.55 on the bar chart is intact, secondly it did break its recent lower bottom of 17593.95 on the line chart intra-day but managed to close reasonably above that, so if it does not close below 17593.95 on the line chart or does not break 17527.55 on the bar chart in 2-3 days time and in the meanwhile moves above its recent top of 17917.90(close above it) & 17943.65 on the line and the bar chart respectively, then the correction may be over and it may resume the up move again. Therefore short call can be attempted here with due caution and only if it maintains below 17660 and fresh short position can be added below 17593.95 and below 17527.55 for sure.

It is in correction mode now, however long call can be attempted in the range of 17067—16962 since it is a very strong support area or try if correction Completion signal emerges as mentioned above, but avoid long call below 16920 for sure, because sustained break below this mark may put a break on the uptrend and a fresh down move may begin.

TRADING OPTION FOR-17-6-2016

1. Sell if it maintains below 17660 with a stop loss of above 17830 for a target of 17570/17527/17408/17350/17209/17067/16962

2. Sell on the rise but not above 17943 with a stop loss of above 17980. It could 

be a risky trade.

3. Long call can be attempted on decline but within the range of 17067---16962 not below 16920 with a strict stop loss of below 16900 or if it moves and sustain above 17945 with a stop loss of below 17820.

Remark: - The trend is up now. It is now in correction mode therefore long call should be avoided now and should only be attempted in 17067---16962 range or if it moves above 17945. Short call seems safer bet as of now so one can try short call as suggested above. 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.