CNX-Bank Index-Technical View For-12-1-2015

CNX-Bank Index closed at 18637.25 on 9-1-2015

SUPPORT: - 18537 / 18428.10 / 18365 / 18211.50 / 18137 / 18051 / 17968 / 17890 / 17546 / 17502

RESISTANCE: - 18676.10 / 18728.20 / 18736.75 / 18875.45 / 18923.60 / 19166.

(Figures in bold are important)

Index opened with a gap up at 18845.90 and made a high of 18864 and a low of 18479.65 before closing the day at 18637.25.It had a volatile session today and it did get past the critical level of 18740 during the day but could not close above it,so  overall it seems that the pull back rally is either completed or near completion ,so optimistically at the most it can extend up to 18930 level . Kindly  note that index will gain good strength and resume smooth up run again only if it moves above 18740 and sustain it for some time and then crosses the 18930 mark. I would therefore take a long call only if it closes above 18740 and stays for 2-3 days.

However aggressive and day trader can try both long and short call at given levels,one can take a long call now for a target of 18740 & 18850 but get alerted if it starts trading below 18600 and exit trade below 18480,short call can also be tried  below 18600 with a stop loss of above 18650 for a target of 18460 & 18350. I once again reiterate that it will regain steady up momentum only if it could sustain above 18740 mark.

Going up it will resistance at 18740 & 18924 and moving down it will have support at 18428  & 18211.

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. I would strictly advice to take long call only if it closes above 18740 and stays, but aggressive and day trader can try both long and short call using the above mentioned levels and stop losses.

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.