CNX--BANK NIFTY -A TECHNICAL VIEW FOR—3-6-2016

CNX--BANK NIFTY

Closed at 17567.80 on 2-6-2016(Open-17405.15/High-17596.40/Low-17350.45)

Support: 17502.45/17498.35/17246.55/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/1601115762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.

Resistance:17670.85/17719/18029.05/18226/18580.65/18662/19030.

It opened on a weak note and traded in a short range before picking up momentum in last 1 hour trade and closed near the high of the day. It is exhibiting good strength and partly indicating that the correction on the closing basis may be over, as it has made higher bottom of 17423.55 but yet to cross the recent top of 17620.90 on the line chart. However long call can still be tried if it move and maintain above 17581 but it would be safe to try long call if it moves and sustain above its recent closing top of 17621. Please avoid long call below 17581 and below 17423.55 for sure because break below 17423 levels may drag it down to 17270---17157 — 17067--17029 ranges. The up-move will only be threatened if it breaks 17067 & 17029 and finally 16920 and sustain below it.   Moving up it will face stiff resistance at 17671/17842/18043/18226/18580.65/18662/19030.

                           TRADING OPTION FOR-3-6-2016

1.  Long call can be tried above 17581 with a stop loss of below 17500.

2. It would be safe to try long call if it moves and maintains above 17621 with a stop loss of below 17540, can add on position if it sustains above 17671 for a target of 17750/17842.

 Remark: - The trend is up and it is  indicating that correction on the closing basis may be over; therefore long call 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.