CNX-Bank Index-Technical View--16-1-2015

CNX-Bank Index closed at 19235.65 on 15-1-2015

SUPPORT: - 19166 / 18923.60 / 18875.45 / 18736.66 / 18728.20 / 18428 / 18211.50 / 18183 / 17968 / 17890 / 17546 / 17502.

RESISTANCE: -19410.40 / 19756 / 20710.

(Figures in bold are important)

Index opened with a whopping up gap of more than 570 points at 19340.45 and made a low of 19061.35 and then made a new all time high of 19410.40 before closing the day at 19235.65.It was a huge up move in index off course, but was news led (Repo rate cut by RBI)  therefore it has to be seen  how it settles down in next 2-3 days before initiating any fresh trade, but the fact remains that It has closed way above the critical point of 18740 and very near the all time high , which shows tremendous strength and indicative of further smooth up move ahead and also suggest that now it is a buy on dip market with a stop loss of close below 18720. But I would still suggest to wait and watch to see how today’s  news led euphoric moves pans out in next 2-3 days, before initiating any fresh long call. However aggressive trader can go ahead with long call on dip with suggested stop loss.

It is important to mention here that the gap it left today still exist and if it makes an attempt to fill the gap in next 3-4 days then it can come down to 18769 level.

Going up it will resistance at 19410.40 & 19756 and moving down it will have support at 19166 / 18923 & 18728.

Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARK:-  :- Long term up trend is intact. Since index has decisively closed above the critical point of 18740,so it suggest to go long on every dip with a stop loss of close below 18700.But I Would suggest that since it was a news led move therefore give it at least 2-3 days breather before initiating any trade.

 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.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.