CNX-Bank Index---Technical View--10-2-2015

CNX-Bank Index closed at 18403.85 on 9-2-2015

SUPPORT: - 18300 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 18428 / 18479 / 18728.20 / 18736.65 / 18740.35 / 18923.60 / 19166 / 19445 / 19779 / 19844 / 19991.40 / 20610 / 20907.55 / 21097 / 21360.

(Figures in bold are important)

Index opened with a gap down at 18650 and made a high of 18667.05 and   thereafter went down and made a low of 18379.60 before closing the day near the low at 18403.85, the gap it created today still exist. It is showing tremendous weakness  as it has broken its 2^nd critical support level of 18728.20 decisively therefore long call should be avoided  till it move above 18740 and stays and note that it will regain momentum only if it moves above 18923.60 and sustain. I would therefore suggest to  try sell call now on the rise but below 18728 with a stop loss of above 17870 or below 18370 with a stop loss of above 18420 for a target of 18200 on 10-2-2015.  Since it is moving down now so the important support level from  where it can bounce back are at 18306 / 18211 / 17890 / 17502 &17440. The next most critical support level is at 17440 break below this can threaten the long term uptrend which may please note.

Going up it will resistance at 18740 & 18923.60 and moving down it will have support at 18211 / 17890 & 17502.

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 it is correcting now therefore it suggested to avoid long call till it gives visible indication of correction completion. Short call can be tried as suggested 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.