CNX--BANK NIFTY
Closed at 17426.05 on 24-6-2016(Open-17213.85/High-17459.20/Low-16946.35)
Support: 17425.80/17350.45/17200/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/16011/15762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.
Resistance:17611/17666.05/17671/17719/17762.05/17844/17907.50/17943.65/17950/
18029.05/18051.50/18278/18580.65/18662/19030.
It opened with a huge down gap of more
than 670 points after the Brexit outcome and went down further and hit the
perceived range of 17067--16922 where long trade was suggested (see my post of
23-6-2016 and earlier post), it respected that range and smartly bounced back
and closed way above the range. However this down move has upset the rhythm of
the market.
It is important to mention here that the
gap it created today is still there and theoretically it can make an attempt to
fill this gap in next 3-4 days time, if it does then it can come up to 17611
level. But it will regain up momentum if it closes above 18045 and sustain,
which may be kept in mind.
Kindly note that today’s down move was a
big jolt to the on-going up move and it
has broken few important trend line
support level also in the process , therefore how it will behave in next
few days time has to be seen. But technically as long as it holds the range of 17067--16922
the uptrend may be in place, sustained break below 16922 will threaten the uptrend
and sustained break below 16797(it changes every day) will possibly put the
break on the uptrend and finally sustained break below 16225(it changes every
day) may end this uptrend and then a fresh down move may begin. Similarly to
regain the up momentum again it has to close above 18045 and sustain. The broad
range for it now is between 18045--16922.
In view of today’s devastating down move
it is suggested not to hurry for long trade now because it may go down further and
break today’s low, therefore see whether it holds the range 17200—17067--16922
in next 3-4 days time, if it does hold this range then take long call. Avoid
long call for sure if it sustains below 16922 till it moves and sustain above 16940
again. It witnessed huge volatility today
and if it continues then it may provide both side trading opportunity for day
traders during the day till it breaks out on the either side of its important
range of 18045—16922. Therefore traders can take their trading call keeping the
said range in mind(take help of support and resistance level also mentioned
above for entry, exit and trailing stop losses), but I caution that long trade
could be highly risky at this point of time therefore traders should get
alerted below 17029 in long trade and exit below 16900. Short trade seems a
safer bet as of now if price movement permits.
TRADING OPTION FOR-27-6-2016
1. It is suggested to avoid long trade.
2. However aggressive day trader can try long call if
it moves and sustain above 17460 for some time with a stop loss of below 17350
for a target of 17565/17611/17650.It
could be a risky trade.
3. Short call can be tried if it moves and maintain
below 17420 with a stop loss of above 17490, can add on position if it sustains
below 17350 with a stop loss of above 17430 for a target of 17200/17067/17029/16962/16946
or sell on the rise near 17611--17680 but not above 17680 with a stop loss of above 17720.
4. Long call can be attempted if it comes
again near the lower band of the range of 17067---16922 with a strict stop loss
of below 16900.
Remark: - The trend is up now. But today’s down move has upset
the up momentum and this correction may continue, therefore it is suggested to
wait and watch for a day or two to initiate fresh long call. Instead short call
seems to be a better bet now 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.
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