CNX--BANK NIFTY
Closed at 17680.80 on 3-6-2016(Open-17657.20/High-17762.05/Low-17649.05)
Support: 17670.85/17502.45/17498.35/17246.55/17174.70/17067.45/17029.85/16962/16932.50/16922.05/16587.25/16431.65/16368/16282.75/16188/16186.25/16141.65/16099.65/1601115762.20/15682.65/15522/15440.25/15005/14767/14761/14754/14445/13810.60/13407.25.
Resistance: 17719/17762.05/18029.05/18226/18580.65/18662/19030.
It is showing good
strength on the technical chart and the up move seems to be intact. But it is
important to mention here that it has retraced more than 58% fall from the all
time top of 20907.55 and recent bottom of 13407.25 and theoretically the last retracement
point of 61.8% is at 18042.43 or say 18045. It is not far away from this point,
please note that it will catch up fresh up momentum only if it moves and
sustain above this mark and if it fails to do that soon, it may correct sharply
from here before resuming the up move again.
Although it is not
showing any sign of fatigue as yet ,but today’s small range movement indicates
that it is bracing for a big move in a day or two on the either side and in
view of its recent vertical rise chances are that it could head down. So for
6-6-2016, 17762.05 and 17620 are the decider levels. Please note that break
below 17620 can bring it down to 17423/17350 and sustained break below 17350
can drag it down for a deeper correction to the level of
17157/17067/17029/17962. Similarly break above 17762.05 can take it to the
level of 17842/18023/18045/18226.It is therefore suggested to take your trading
call after the breakout and not within the range of 17762.05---17620. Contrarian
trader can try short call also for correction if it sustains below 17620.
It is important to mention here that the
up-move will only be threatened if it breaks 17067 & 17029 and finally
16920 and sustain below it. Therefore if it corrects then fresh long call
should surely be attempted in the range of 17067---16962 with a stop loss of
below 16920 .The bias is up as of now.
TRADING OPTION FOR-6-6-2016
1. Long call can be tried above 17681 with
a stop loss of below 17620 for a target of 17762/17842/18030/18045. It could be
risky trade.
2. It would be safe to try long call if it
moves and maintains above 17762.05 with a stop loss of below 17660.
3. Contrarian trader can try short call
for correction only if it sustains below 17620 with a stop loss of above 17685
for a target of 17423/17350/17157/17067/17029. It could be a risky trade but
worth trying.
Remark: - The trend is up and it is indicating that a big move
on the either side is ahead, therefore one can try both side trade depending on
the breakout from 17762.05 and 17620 point. Try long trade above 17762.05 and
can try short call as well below 17620 for correction only. 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.
