CNX--BANK NIFTY
Closed at 17718.60 on 20-6-2016(Open-17425.80/High-17779/Low-17425.80)
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:17719/17844/17943.65/17950/ 18029.05/18051.50/18278/18580.65/18662/19030.
It has not given correction completion
confirmation as Nifty has given. In fact it broke its recent bottom of 17527.55
on the bar chart intra day thereby making lower bottom, broke its recent higher
bottom of 17671.20 on the line chart intra day but managed to close above it.
So it is making lower top and bottom on the bar chart, made higher bottom again
on the line chart but yet to make higher top therefore it seems that correction
is still on. In this regard please note that as of now close above 17917.90 and
then sustained move above 17943.65 is important for correction completion
confirmation and both these levels are far away as this point of time.
Similarly close below 17671.30 and then sustained break below 17620 will
indicate that this correction may continue and it could head lower before
resuming the up move again.
In this regard please note that as
mentioned in my post for 20-6-2016 that it could hit 17400 level, it almost hit
this level today, but it is important to mention here that technical parameter indicates that it could still close below
17423 once , if it fails to cross 17944 in next 2-3 days time.
In view of the above observation it would
be safe to try long call if it moves and sustain above 17943.65, however
aggressive day trader can try long call if it sustain above 17790 but long trades
should be handled with extreme caution. Please note that short call can also be
attempted only if it moves and sustains below 17660 for some time.
In case the correction continues and
deepen, even then long call can be attempted in the range of 17067--16962 since
it is a very strong support area but avoid long call below 16920 for sure,
because sustained break below this mark may put a break on the uptrend which
may please be noted.
TRADING OPTION FOR-21-6-2016
1. Aggressive day trader can try long call if it moves
and sustain above 17790 for some time with a stop loss of below 17670 for a
target of 17845/17945/18029/18052.It could be a risky trade.
2. It would be safe to try long call if it moves and
sustain above 17944 with a stop loss of below 17850.
3. Sell if it maintains below 17660 with a stop loss
of above 17730 for a target of 17593/17527/17408/17350/17209/17067/16962
4. Long call can be attempted on decline
but within the range of 17067---16962 with a strict stop loss of below 16920.
Remark: - The trend is up now. It seems that down correction may
extend therefore be careful in long trade at this point of time. It is
suggested to take your trading call according to the price movement and 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.
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