CNX--BANK NIFTY
Closed at 18004.25 on 4-7-2016(Open-18122.40/High-18124.10/Low-17989.60)
Support:17943.50/17907.50/17670/17636/ 17527/17518/17425/17350/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/16011/15762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.
Resistance: 18029.05/18051.50/18074.95/18227/18312/18580.65/18750/19111.
After 6 days of straight rise it corrected
today and closed below the critical point of 18045(see my earlier post) after
staying above it for just one day therefore it seems that it is showing
exhaustion at this level and it could correct further before resuming the up
move again. Please note that sustained close above this level only may take it
to the level of 18300—18600 or higher. Overall it is looking good but certain
technical indicators indicates otherwise and points that it may reasonably
correct from here, therefore it has to be seen in next 2-3 days time that how
this correction culminates. Going down it will find support at
17863/17687/17546/17404/17229 and it may possibly bounce back from any of these
points and then may continue the up move again. Please note that sustained break below 17229
may drag it down further but as long as it holds the range of 17029—16922 the
uptrend may be in place.
In
view of the above observation it is suggested that long trade should only be
tried if it moves and sustain above 18100 or buy on decline can also be
attempted but do not increase long commitment if it starts trading below 17716
because then it may seek support at much lower levels of 17687/17546.35/17404/17229.
Please note that it would be safe to try
long call above 18100 or else try long call only if it gives visible indication
of correction completion possibly at the levels mentioned above. To take
advantage of down correction short call can be attempted if it moves and
sustain below 17985. The overall trend is up as of now but this correction may be
severe if it fails to close and sustain above 18045 soon or if it break
below 17716 and sustain, which may be kept in mind.
TRADING OPTION FOR-7-7-2016
1. Long call can be tried above 18100 with a stop loss
of below 17985 for a target of 18147/18188/18227/18313.
2. Long call can be tried on decline at proper points but
not below 17716 with a stop loss of below 17518.It could be a risky trade.
3. Short call can be tried if it moves and sustain
below 17985 with a stop loss of above 18100 for a target of 17863/17740/17687/17546/17527.
Short trade is suggested for taking advantage of down correction. It could be a
risky trade but worth trying.
Remark: - The trend is up. As expected it corrected today and
technical parameters suggest that it could correct further from here therefore it has to be seen how this
correction ends. It is therefore suggested to try long call above 18100 only;
short call seems a safer bet now so it can be tried as suggested above for down
correction move. 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.
Overall trend of Nifty is still strong and sustainability above 8600 would trigger further up move else consolidation will set in. So, traders should opt for sector & stock specific trading approach in current market conditions. For details contact epic research .
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