NIFTY--CNX-BANK INDEX--BSE-SENSEX---Technical View---24-2-2015

NIFTY CLOSED AT 8754.95 ON 23-2-2015

SUPPORT: - 8725 / 8671 / 8626.95 / 8593 / 8535.35 / 8470 / 8445.6 / 8364 / 8282.70 /

8272.80 /  8236 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

 RESISTANCE: - 8793.40 / 8802.50 / 8808.90 / 8833.60 / 8856.85 / 8873 / 8913.45 /

8996.60 / 9040 / 9065 / 9338.

Nifty opened on a firm note at 8856.85 and touched a high of 8869 for the day and then moved in a 8830—8850 range for quite some-time before plunging down and made a low of 8736.10 and closed the day at 8754.95. As expected it  encountered profit booking today ,furthermore. It also broke the lower band of the weekly range today which was at 8790 and this shows weakness. The last short term moving average support is at 8725 and break below this can drag it down to its most critical support level of 8626.95.I would therefore still advice to avoid long call below 8860 instead suggest to try short call on the rise but below 8809 with a stop loss of above 8840 or below 8725 with a stop loss of above 8740 for a target of 8735 and 8670 respectively similarly aggressive intra-day trader can try long call if it stays above 8760 on 24-2-2015 with a stop loss of below 8720 but be cautious in the long trade because short term bias is on downside. 

  

Going up it will face resistance at 8809 & 8860 and moving down it will have support at 8725 / 8670 & 8626.95. 

CNX-Bank Index closed at 18913.40. on 23-2-2015

SUPPORT: -18736.65 / 18728.20 /18428 / 18226 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: -18923.60 / 19166 / 19200 / 19445 / 19532.90 / 19778.95 / 19844 / 19884 / 19992 / 20275 / 20610 / 20907.55. 

Index is exhibiting tremendous weakness and today it just closed below its critical support level of 18923.60, furthermore it is below its all short term moving averages, therefore long call should be avoided till it moves at least above upper band of its short term moving average range which is between 19030---19405(it changes every day) for 24-2-2015 but beyond this range other parameters resistance for it extends up to 19850 level ,so crossing this resistance range seems to be an uphill task for it right now,therefore long call should be avoided. Please note that long call should be completely avoided below 18923.60 for sure because then the next most critical support for it exist at 18728 and it if breaks this mark and stays then it can go in for much deeper correction. Therefore those who want to try long call can try above 18923.60 or near 18728 with a stop loss of below 18870 & 18690 but be cautious in long trade because the bias is on the downside, I would therefore suggests to try short call on the rise at appropriate level with a proper stop loss or sell below 18875 with a stop loss of above 18925.

In BSE- Sensex  closed at 28975.11 on 23-2-2015

SUPPORT: -28822.37 / 28731 / 28469 / 28406 / 28064.49 / 28044 / 27851 / 27739 / 27499.42 / 27485.77 / 27203.25 / 27091 / 26776.12 / 26469.42.

RESISTANCE: - 29143.63 / 29182.95 / 29231.41 / 29316.58 / 29522.86 / 29844.16

Sensex opened on a firm note at 29316.58 and touched a high of 29362.96 for the day and then went down and made a low of 28913.16 and closed the day at 28975.11. It encountered profit booking today, furthermore. It also broke the lower band of the weekly range today which was at 29083.40 and this shows weakness. The last short term moving average support is at 28885 and break below this can drag it down to its most critical support level of 28822.37 and if it breaks this level and stays then it can trigger much deep correction. I would therefore still advice to avoid long call below 29350 instead suggest to try short call on the rise but below 29084 and then below 29350 with a stop loss of above 29125 & 29380 or below 28975 with a stop loss of above 29020 for a target of 28885 and 28822 respectively similarly aggressive intra-day trader can try long call above 28980 on 24-2-2015 with a stop loss of below 28940 but be cautious in the long trade because short term bias is on downside.   

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. Use support and resistance levels for entry, exit and trailing stop losses.

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.