CNX--BANK NIFTY
Open-20061.90--High-20229.65--Low-20009.95—Close-20196.80
on
3-2-2017
Support:- 19922.70/19816.50/19794.95/19518/19435/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.
Resistance:-20168.35/ 20248/20264.80/20309.65/20541.65/20575.80/20907.55.
It steadily moved up and closed today
within its very important range of 20168.35---20248 (see my post of 3-2-2017).
It is exhibiting tremendous strength but it has to move above 20248 and sustain
on the closing basis consistently to make an attempt to hit a new all time high,
but attempting new high may not be smooth because it will face stiff resistance
on the way up at 20310/20440 & 20575.80 levels. So 20248 is a very critical
point and if it fails to move above it on the closing basis and sustain then it
could correct before moving up further. Moving down the most important levels would
be at 19794.95 & 19435.45, please note that break and close below 19794.95
will be an indication of break in the on-going uptrend and break and close
below 19435.45 will confirm the end of the current up rally and then it may slip
into deep corrective mode. So at present the important trading range is
20248----19794.95 and either side breakout will decide which way it can move,
but looking at the present momentum chance are that it could give upside break. However
plan your trade keeping the said range and resistances thereafter in mind for
the effective outcome of your trade. The
bias is on the upside as of now, but it is critically poised, so be vigilant
and cautious in your trade.
It is important to mention here that
for 6-2-2017 moving up the range of 20230---20315 may pose stiff resistance and
if it does not move above this range then it could retreat from here, so be cautious
in your trade positions around this range.
In view of the above observation, it
is suggested to try long trade either above 20248 with a stop loss of below
20180 for a target of 20297/20315/20440/20576 or on decline near but not below
19794.95 with a stop loss of below 19670. It would be better and safe to try long
call above 20248 on 6-2-2017.
Remark: - Technically it is on a strong footing
and no doubt it is buy on dip market, but at this juncture it is precariously
poised but an upward bias. Therefore long call can only be tried above 20248. Avoid
buy on decline on 6-2-2017.
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.
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.
Contact me for
strategic guidance to enter and exit the trade.
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Thank you for sharing your views.