CNX--BANK NIFTY -A TECHNICAL VIEW FOR—22-6-2016

CNX--BANK NIFTY

Closed at 17619.10 on 21-6-2016(Open-17761.65/High-17763.30/Low-17585.65)

Support: 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:17620.90/17671/17719/17844/17943.65/17950/ 18029.05/18051.50/18278/18580.65/18662/19030.

As perceived (see my post for 21-6-2016) the correction is still on, it has broken its recent higher bottom of 17671.30 on the line chart thereby making lower top and bottom again, it is already making lower top and bottom on the bar chart. Please note that to give first sign of correction completion on the line chart it has to close above 17718.60 and on the bar chart to hold the recent lower bottom of 17425.80, therefore it is suggested to avoid fresh long call till it closes above 17718.60. Instead short call can be tried now below 17619 or on the rise but not above 17720 for 22-6-2016 for taking advantage of the down correction.

Moving down it will find good support at 17527/17425/ 17350 but sustained break below 17350 can drag to down to 17067—16922 levels which a very crucial and make or break support range, it is worth trying long call around or within this range but not below 16922 because sustained break below this mark may put a break on the uptrend and fresh down move may begin which may please be noted.

  

TRADING OPTION FOR-22-6-2016

1. It is suggested to avoid long call till it closes above 17718.60.

2. However aggressive day trader can try long call if it moves and sustain above 17671 for some time with a stop loss of below 17590 for a target of 17720/17790/17842.It could be a risky trade.

3. Sell if it maintains below 17619 with a stop loss of above 17730 for a target of 17593/17527/17425/17350/17209/17067/16962 or sell on the rise but not above 17720 with a stop loss of above 17765.

4. Long call can be attempted on decline but within the range of 17067---16922 with a strict stop loss of below 16900.

Remark: - The trend is up now. But it is still in down correction therefore long call should be avoided till it closes above 17718.60, instead short call can be attempted if price movement supports. 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.