CNX-Bank Index-Technical View--2-2-2015

CNX-Bank Index closed at 19843.75 on 30-1-2015

SUPPORT: - 19732 / 19606 / 19250-200 / 19166 / 19061.35 / 18847--800 / 18769 / 18736.66 / 18728.20 / 18517.90 / 18428.

RESISTANCE: - 20610 / 20907.55 / 21097 / 21360.

(Figures in bold are important)

Index opened with a small gap up at 20600.65 and the open was the high also for the day, it could not sustain at the upper level and immediately sipped into negative zone and steadily moved down and made a low of 19732.45 before closing the week at 19843.75. It was a devastating down day today and as expected the desired correction has set in and that too around the anticipated range (see my post dt-27-1-2015) and index tanked by more than 860 points from intra -day high and finally closed 685.84 points lower than the previous day. This correction may last for few days and these are the possible points from where it can bounce back 19600-19550 / 19240-200 /18840-800 / 18300 and resumes the up move again.

Please note that 18923 & 18728 are the benchmark points for the entire year of 2015, so get alerted in long trade below 18923 and avoid long trade for sure below 18728 till it bounce back above 18740 and sustain.

Technically it is looking much weak in comparison with Nifty and BSE Sensex, furthermore it has tested the short term moving averages today and broken few of them too and it is also near certain long term parameters and the range for which is between 19680---19325(it changes every day) for 2-2-2015, therefore it is suggested to avoid long call below 19680 and below 19325 for sure instead try short call below 19730 with a stop loss of above 19850 for a target of 19550 & 19300 Overall it is advised to avoid long call for at least 2-3 days. However those who want to take long call should only try it above 20150 with a stop loss of below 19950.

Going up it will resistance at 20170 / 20610 & 20907.55 and moving down it will have support at 19600 / 19325 /19166 / 19061 / 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 still intact. Since today’s move clearly indicated that correction has set in therefore long trade is ruled out for now till it gives ample indication of correction completion.

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.