CNX-Bank Index-Technical View For The Week Starting From-8-9-14

CNX-Bank Index closed at 15982.50on 5-9-2014

Range for the week ended 5-9-14 was :-16208.55---15790.25

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

RESISTANCE: - 16208.55 / 16265 / 16330 / 16413 / 16580—16720

  (Figures in bold are important)

Index opened on a firm note for the week under review and made a new all time high of 16208.55 on 3-9-14 and  made a low of 15790.25 before closing the week at 15982.50.It did not showed the required strength and the last three days move indicate that correction may set in,if it does then the possible correction completion points are 16029 / 15918 / 15828 / 15739 / 15638 from where index can bounce back Kindly note that if it breaks the 15638 point and stays then there could be potential threat of it going down further and sharply too, as of now chance of which are looking weak, kindly note that in bull market correction don’t last for long. therefore it is still buy on dip market but with caution. Kindly note that going up it will face good resistance at 16208.55 / 16263 &16330.

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 just above the upper band of short term DMA range of 15950—15530(it changes every day) for 8-9-14 but since it is very close to it, therefore  be alert in long trade and avoid fresh long call if it starts trading below 15950 and get out of the long trade if closes below 15530 and stays. It has made recent bottom of 15448.90 so avoid long call below this point for sure.  

2ON 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 15451--14730(for the next week) starting from-8-9-14. If it moves above 16208.55 and stays then it could move up to 16313 / 16418 & 16522 during the week similarly if it stays below 15982.50 then it could move down to 15877 / 15773 & 15664 level..

. 3. ON MONTHLY CHART:- It is ok on the chart  but it has been continuously moving up for the last seven months and gave a stupendous rise of 6029.35 points. It rose from 9940 in Feb-14 to 15973.35 in August-14, furthermore it made new high all time high of 16208.55  on 3-9-14and now at 15982.50 therefore correction on the monthly basis looks imminent in the month of Septemper-14 ,it is showing some weakness and correction may creep in any time but no distinct sign of it as yet , therefore, I suggest that one should be cautious in long trade. If it stays above 15973.35 it can move up to 16605 level during the month of September-14 similarly if it stays below 15790.25 it can move down to 15158 chances of which are looking slim as of now, therefore be cautious in long trade.

 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 15950 and avoid fresh long call below this point ,one can try long call at good support levels(see support and resistance point) with an adequate stop loss..

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

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