CNX--BANK NIFTY-A TECHNICAL VIEW FOR—29-6-2016

CNX--BANK NIFTY

Closed at 17561.55 on 28-6-2016(Open-17497/High-17626.70/Low-17481.50)

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 flat to negative note and then closed with a small gain of 46.60 points. But it is still looking weak despite its positive close today because it has made lower bottom on the line and bar chart and still not made higher top, furthermore it is running below its short term moving averages which are in the range of 17562-----17694(it changes every day) therefore it seems that it may still correct from here till it closes above this range. However, even if it closes above its short term moving average range it will show some strength only if it crosses its recent top of 17892.45 and 17943.65 on the line chart and bar chart respectively and finally it will regain lost momentum only it is closes above 18045 and sustain, which looks slightly difficult to happen at this point of time.  In view of the above it seems that the up journey from here may not be smooth. It is therefore suggested to avoid long trade till it moves above its short term moving average at least i.e. above 17694 and sustain, instead short call can be tried on the rise near 17630--17694 but not above 17694 or sell below 17420.

TRADING OPTION FOR-29-6-2016

1. It is suggested to avoid long trade till it closes above 17694.

2. However aggressive day trader can try long call if it moves and sustain above 17570 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 17694 but not above 17694 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. It is still showing some weakness therefore avoid long call till it moves and sustain above 17694 at least ,short can be tried 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.