CNX-Bank Index-Technical View For-9-1-2015

CNX-Bank Index closed at 18701.40 on 8-1-2015

SUPPORT: - 18676 / 18428.10 / 18211.50 / 18137 / 18051 / 17968 / 17890 / 17546 / 17502.

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

(Figures in bold are important)

Index opened with a gap up at 18587.10 and made a high of 18752.30 and a low of 18486.20 before closing the day at 18701.40.It made a robust recovery of 397.15 points today after two day’s fall but it still has two hurdle to cross before it resumes smooth up move again and that is 18740 & 18923.60 level. I would therefore suggest to take positional long call only if it moves above 18740 and sustain and can add further long position above 18923.60 for good gains. The aggressive and day trader can try long call now also on 9-1-2015 with a stop loss of below 18500. 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. Aggressive trader can try long call now with a stop loss of below 18500 but I would prefer to try long call only if it moves above 18740 and sustain.

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.