CNX--BANK NIFTY
Closed at 16795 on 29-4-2016(Open-16712.95/High-16841.30/Low-16527.55)
Support: 16750/16726/16648.30/16587.25/16526/16386/16349.70/16282.75/16205/16188/16141.65/16099.65/16080.55/16011/15958/15762.20/15682.65/15522/15440.25/15178.30/14989.40/14761/14754/14445/13810.6013407.25.
Resistance:16824.05/16922.05/16932.50
- 17067.45/17174.70/17246.55/17498.35/17502.45/17719/18029.05.
It exhibited huge volatility and had
a wild swing of more than 300 points both ways during the day but at the end it
closed with a gain of 78.09 points. Its technical setup is still good. It is holding
its recent bottom of 16678.85 on the line chart, closed above its bear market
threshold point of 16726 and still above its short term moving averages,
therefore it could still move up from here as long as it holds 16678.85 on the
closing basis. However the up journey from here may not be smooth because it
will face very stiff resistance in the range of 16726—16855--16940—17068.
Please note that it almost crossed this range recently and then slipped down,
so crossing it for the second may be slightly difficult for it.
It is also important to mention here
that although its technical setup looks o.k. on the chart but preceding two
days move and certain technical indicators and patterns indicates that it may
correct from here also. Therefore the overall bias is mixed at this point of time
but slightly in favor of upside. Therefore long call can be tried if it moves
and sustain above 16855 but I once again repeat that it would be safe to try
long call above 17030 only(see my post for 28-4-2016) . Similarly short call should
be tried if it moves and sustain below 16678.85 or in wake of advance technical
parameters indication sell on the rise at proper point or near but not above 17030
can also be attempted but with extreme caution.
The range for the week starting from
2-5-2016 is between 17030—16526 and it is at the midpoint now, so it is
difficult to say which way it will move, therefore be watchful and alert. The
trader should structure their trade keeping the above range in mind. But long
trader should get alerted if it consistently trade below 16795 and exit long
trade for sure if it moves and sustain below 16678. Similarly short trader
should get alerted if it moves and sustain above 16855 but attempt short trade
for sure below 16678.
TRADING OPTION FOR-2-5-2016
1. Long call can be tried if it maintains
above 16855 with a stop loss of below 16750 for a target of
16940/17003/17030/17068/17124. But it would be safe to try long call if it
moves and sustain above 17030.
2. Sell on the rise but not above 17030
with a stop loss of above 17080 and the possible sell points could be at 16900/16952/17025.Please
use self defined stop losses with the help of resistance point mentioned above
for suggested sell points trade to manage your trade better. Please be alert above 16855 in short trade because
then it may give you chance to go short at a much higher levels.
3. Sell below 16678 for sure with a stop
loss of above 16800 for a target of 16572/16526/16386.
Remark: - It
is giving mixed indication here therefore both side trade can be tried
depending on the price movement. Take your trading call as suggested above.
Please initiate your trade after watching the market for at least 30-45
minutes.
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.
