CNX-Bank Index-Technical Overview For The Week Starting From-15-9-14

CNX-Bank Index closed at 16254.15 on 12-9-2014

Range for the week ended 12-9-14 was :-16309.70---16049.25

SUPPORT: -16222.55 / 16208.55 / 15973.35 / 15790.25 / 15742.05 / 15740.40 / 15626.90 / 15592.80 / 15503.40 / 15448.90 .

RESISTANCE: -  16275 / 16309.70 / 16422 / 16660 / 16750 / 17270.

  (Figures in bold are important)

Index opened on a firm note for the week under review and made a new all time high of 16309.70 and thereafter made a low of 16049.25 before closing the week at 16254.15.It is exhibiting better strength then nifty in last 2-3 days. Its recent short bottom is at 16049.25 which is a very useful support but the major bottom is at 15891.75.It seems that it may outperform the nifty in coming days. Therefore one can try long call on dip with an alert point below 16049.25 and exit point below 15891.25.

TECHNICAL VIEW

1.      ON DAILY CHART:- It looks ok on the daily chart and as of now it is buy on dip, although it is above the upper band of short term DMA range of 16156—15850(it changes every day) for 15-9-14 but since it very close to it, therefore  be alert in long trade and avoid fresh long call if it starts trading below 16150 and get out of the long trade if closes below 15850 and stays. It has made recent short bottom at 16049.25 and major bottom at 15891.25 so avoid fresh long call below 16049.25 and exit long call if it closes below 15891.25 and stays. Going up it will face tough resistance at 16364 / 16492 & 16660.

2.      ON WEEKLY CHART:- It is ok on the chart . Furthermore it is way above  the upper band of the short term DMA range which is between 15620--14875(for the next week) starting from-15-9-14.

Kindly note that there has been straight rise in the index from14709.10 to 16309.70 in last five weeks ,therefore it looks vulnerable for a correction on the weekly basis however there is no visible sign of it as yet even then be alert in long trade and avoid fresh long trade completely below 16049.25 for the entire week.

 REMARK:- Long term trend is still up, therefore I would suggest  to adopt buy on dip strategy at appropriate level with proper stop loss. Please be alert in long call below 16156 and exit long trade if it closes below 15891.25.

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

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade