CNX--BANK NIFTY-A TECHNICAL VIEW FOR—28-6-2016

CNX--BANK NIFTY

Closed at 17514.95 on 27-6-2016(Open-17346.30/High-17611.20/Low-17346.30)

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 on a negative note then moved up and filled the gap completely which it created on 24-6-2016 but could not go beyond that and slipped down from there but closed with a gain of 88.89 points. But it is showing some sign of weakness after the colossal fall of 24-6-2016 as it has broken a series of previous bottoms and tops on the line chart and made lower bottom of 17426.05, also making lower top and bottom on the bar chart and furthermore it is running below its short term moving averages, which are in the range of 17560—17697(it changes every day). Therefore chances of moving down looks greater that moving up from here till it closes at least above its short term moving average upper band of 17697. It is therefore suggested to avoid long call now, instead try short call if it moves and sustain below 17420 or on the rise near 17697. Moving down it will find support at 17425/17346/17200/17067/17029/16962/16946.

It seems that it may correct further from here but 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.

TRADING OPTION FOR-28-6-2016

1. It is suggested to avoid long trade.

2. However aggressive day trader can try long call if it moves and sustain above 17530 for some time with a stop loss of below 17480 for a target of 17611/17650/17719/17800.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 17527, can add on position if it sustains below 17346 with a stop loss of above 17430 for a target of 17200/17067/17029/16962/16946 or sell on the rise near 17697 but not above 17697 with a stop loss of above 17750.

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 it is showing some weakness therefore long call should be avoided now, 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.