CNX-Bank Index-Technical View-7-8-14

CNX-Bank Index closed at 15008.65 on 6-8-2014

SUPPORT: - 14933 / 14858.90 / 14857.50 / 14709.30 / 14338.65 / 14063.60 / 13414.30.

RESISTANCE: - 15089.30 / 15096.10 / 15137.60 / 15267.60 / 15499.70 / 15568.05 / 15592.80 / 15626.90 / 15725.80 / 15742.05/ 15930 / 16308 /.

 (Figures in bold are important)

Index opened in negative territory today and steadily went down during the day  and made low of 14983.50 before closing the day near the low point at 15008.65.It has closed decisively below the short term DMA range today and also broken recent bottom of 15096.10.The index is exhibiting gross weakness and indicates reasonable to big fall in coming days, therefore I suggest sell call on the rise as of now with an appropriate stop loss. The short term DMA range is between 15293--15162 (it changes every day) for 7-8-14, therefore fresh long is complete avoid call till it moves above the upper band of the short term DMA and stays. Going down index will get support at 14857.50, 14709.30 & 14338.65.

REMARK:- Long term trend is still but it seems that we are in down correction and this may last for few days, therefore long call is a complete avoid for now until and unless it moves above the upper band of the short term DMA or try long call when it gives  visible sign of completion of down correction The expected region for aggressively trying the long call would be between 13850--14280.As of now ,I would suggest to try short call on the rise at appropriate level with an adequate stop loss.

 Kindly note that make your cost your stop loss in favorable trade and then trail it as the price moves 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

                                              Note:-PRICE STATED HERE IS OF SPOT MARKET

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