CNX-Bank Index-Technical View--20-10-14

CNX-Bank Index closed at 15929.80 on 17-10-2014

SUPPORT: -   15843.70 / 15742.05 / 15725 / 15626.90 / 15592.80 / 15503.40 / 15477.05 / 15392.25 / 15370.70 / 15301.65 / 15168.40 / 15130.35

RESISTANCE: - 15973.50 / 16020 / 16208.55 / 16272.35 / 16309.70.

  (Figures in bold are important)

Index opened on an extremely positive note at 15617.35 and made a high of 15973.50 and low of 15603.45 for the day before closing the day at 15929.80.It exhibited   tremendous strength today and suggest to adopt buy on dip strategy in it. It also decisively   moved above its short term moving averages upper band again and also made another short bottom at 15477.05 which is a good sign. The range for short term DMA is between 15676---15532(it changes every day) for 20-10-14, since it is giving whip saw over averages, therefore I would personally initiate long trade in it only if it stays above the upper band of the averages for another 3-4 days, short trade is ruled out till it is above the lower band of the average i.e.15532 or above the recent short bottom of 15477.05.If it crosses 16020 mark and stays then it may cross the previous all time high of 16309.70, chances of which are looking reasonably good as of now. The aggressive trader can try long call now or on the dip with a stop loss of close below 15477.

REMARK:- Long term trend is still up, I would personally  wait and watch for at least 2 -3 trading days before initiating any trade in it but aggressive  trader can try long call now and on dip with a stop loss of close below 15477.

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