CNX-Bank Index--Technical View---12-2-2015

CNX-Bank Index closed at 18929.05 on 11-2-2015

SUPPORT: - 18923.60 / 18736.65 / 18728.20 / 18479 / 18428 / 18300 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 19166 / 19445 / 19779 / 19844 / 19991.40 / 20610 / 20907.55 / 21097 / 21360.

(Figures in bold are important)

Index opened on a positive note at 18890.75 and the open was the low also for the day and thereafter it made a high of 19051.80 for the day before closing the day at 18929.05     . Today it has closed just above its most critical level of 18923.60  therefore as long as it hold this level the on-going pull back rally may go to these levels 19252 / 19568 / 19779 / 19884 & 20275 before it get exhausted but if it manages to move above 19550 as of now and stay then it will resume  the up momentum again. Therefore hold existing long trade above 18923.60 and can add fresh long position also above this with a stop loss of below 18850. Please note that if it consistently starts trading below 18923.60 avoid long call for sure instead and try short call  with a stop loss of above 19080 for a target of 18728 and if it starts trading below 18728 mark then fresh short position can be taken with a stop loss of above 18750 for a target of 18410.

Going up it will resistance at 19251 / 19570 & 19884 and moving down it will have support at 18923.60/ 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.