CNX-Bank Index-Technical Overview For The Week Starting From-22-9-14

CNX-Bank Index closed at 16152.15 on 19-9-2014

Range for the week ended 19-9-14 was :-16239.70---15770.80

SUPPORT: -16152 / 16049.25 / 15982.50 / 15973.35 / 15891.75 / 15790.25 / 15770 / 15742.05 / 15740.40 / 15626.90 / 15592.80 / 15503.40 /15448.90 .

RESISTANCE: - 16208.55 / 16222.55 / 16239.70 / 16309.70 / 16340 / 16428 / 16580—16720

  (Figures in bold are important)

Index opened on a negative note and then made a high of 16239.70 for the week under review and thereafter went down sharply and made a low of 15770.80 and then recovered sharply too and  closed the week at 16152.15.The weekly movement indicate that the momentum is still there but slightly less in comparison with nifty, however I suggest to buy on dip at appropriate level and with an adequate stop loss.

                                                             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 16113—15942(it changes every day) for 22-9-14 but since it very close to it, therefore  be alert in long trade and avoid fresh long call if it starts trading below 16113 and get out of the long trade if closes below 15942 and stays. Going up it will face tough resistance at 16309.70 /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 15758--14996(for the next week) starting from-22-9-14

 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 16113 and exit long trade if it closes below 15942.

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