CNX-Bank Index--Technical View--11-2-2015

CNX-Bank Index closed at 18752.50 on 10-2-2015

SUPPORT: - 18736.65 / 18728.20 / 18479 / 18428 / 18300 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 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 18242.95 and made a low of 18226.90 and thereafter it shot up and made a high of 18933.70 before closing the day at 18752.50 in this volatile movement today it has filled the gap of today as well as the gap it left on yesterday. Today’s up-move was just a pull back as of now and this may continue for 2-3 days or may get over tomorrow also. Since it has closed above its 2^nd critical level of 18736.65 &18728.20 so long call can be tried here with a stop loss of below 18700 but note that it will regain momentum only if it moves above 18923.60 and maintains, therefore it is suggested to see that whether it hold 18728 or not in 1st hour of trade tomorrow if it does then try long call with aforesaid stop loss, below 18700 long call should be completely avoided. The aggressive trader can attempt short call below 18728 with a stop loss of above 18800 or below 18403 with a stop loss of above 18450 for a target of 18211. The very important support level for it now exist at 18211 and break below this can drag it down to 17500 mark. The bias as of now is on the down side

Going up it will resistance at 18923.60 & 19166 and moving down it will have support at 18728 / 18403 / 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. The aggressive trader can try both long and short call 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.