CNX-Bank Index-Technical View For-8-1-2015

CNX-Bank Index closed at 18304.25 on 7-1-2015

SUPPORT: - 18137 / 18051 / 17968 / 17890 / 17546 / 17502.

RESISTANCE: - 18334 / 18428.10 / 18676.10 / 18728.20 / 18736.75 / 18875.45 / 18923.60 / 19166.

(Figures in bold are important)

Index opened on a negative note at 18382.55 and made a high of 18482.05 for the day and a low of 18211.50 before closing the day at 18304.25.After yesterday’s huge fall it showed no sign of recovery today and closed 126.50 points lower which indicate weakness in it and pointing towards further fall in coming days, please note that If it fails to hold 18137 & 17895 level then it may break the recent bottom of 17502.45 it made on 17-12-2014,chances of which are looking reasonably good at this point of time,however in between short up rally could be there. I would therefore advice to avoid long call completely till it moves above 18740 and stays or it gives enough indication of correction completion. As of now it is sell on the rise market, so try short call on the rise at appropriate level with a proper stop loss and existing short position can  be held on to  below 18428.10 with a stop loss of above 18485 for the entire remaining week for a target of 18130 & 17900. Going up it will resistance at 18590 & 18740 and moving down it will have support at 18137 & 17895.

 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. It is in correction mode now, therefore long call is completely ruled out till it gives visible sign of correction completion. As of now it sell on the rise market, so try short call on the rise and hold existing short call below 18428.10 for the entire remaining week with a proper stop loss as mentioned above. 

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.