CNX-Bank Index-Technical View For-19-1-2015

CNX-Bank Index closed at 19223.15 on 16-1-2015

SUPPORT: - 19166 / 19061.35 / 18923.60 / 18875.45 / 18736.66 / 18728.20 / 18517.90 / 18428 / 18211.50 / 18183 / 17968 / 17890 / 17546 / 17502.

RESISTANCE: -19410.40 / 19756 / 20710.

(Figures in bold are important)

Index opened on a positive note at 19274.15 and made high of 19275.80 and a low of 19108.35 before closing the week at 19223.15. After the previous day euphoric move, It moved in a 167 point range today which gives an indication of consolidation. It is exhibiting tremendous strength which is indicative of a decent up move ahead.

The technical parameter also suggest to adopt buy on dip strategy and the authentic stop loss for positional trade should be close below 18720 but for day trade the stop loss should be below 19050 only . Please note that it could encounter profit booking in the range of 19200—19500, so long trade should be handled cautiously.

 Please do not forget that the up gap it left on 15-1-2015 still exist and chances of filling this gap is distinct at least in next 2-3 days and if it breaks the level of 19061 then it will attempt to fill the gap and in the process it can come down to 18769 level but if it fails to fill the gap in next 2-3 days time then it will be difficult to say when it will fill it. Therefore one can initiate long trade on dips but with caution and get alerted below 19061.

Going up it will resistance at 19410.40 / 19500 & 19756 and moving down it will have support at 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 intact. I would suggest to adopt buy on dip strategy with caution and suggested 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.