NIFTY---CNX BANK INDEX---BSE SENSEX---Technical View---25-2-2015

NIFTY CLOSED AT 8762.10 ON 24-2-2015

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 is exhibiting huge volatility and swing on both side and it is expected to continue till the Union Budget, therefore intra-day trader can take advantage of this swing and can try both long and short call at appropriate level with proper stop loss, but please note that the bias is on downside as of now so one should be extra careful and cautious in the long trade at this point of time. It is in correction mode now and it may complete correction or may bounce back temporarily from these points 8744 / 8691 / 8626.95 / 8559 & 8470 and going up it will face resistance at 8793.40 / 8808.90 & 8860. Kindly note that  it has critical support at 8626.95 therefore long call should be avoided for sure below this point and then can be tried near 8550--- 8470 or if it bounce back again above 8626.95. Both long and short call can be taken as suggested below.

1.SHORT CALL:- Nifty movement now suggest to try  sell trade.

   (A) Sell on the rise but below 8809 with a stop loss of above 8840.

   (B) Sell below 8725 with a stop loss of above 8750 for a target of 8660.

2.LONG CALL:- Its movement suggest to avoid long call as of now but aggressive trader can try it  as mentioned below.

   (A) One can try long call above 8809 or 8860, with a stop loss of below 8790 & 8830   respectively but it would be safe to try it above 8860.

             

CNX-Bank Index closed at 18883.80. on 24-2-2015

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 in correction mode and showing tremendous weakness and it is below its 1^st critical support level of 18923.60 also and the 2^nd most important support level is at 18728 and it almost touched it today and please note that break below this mark can drag it down to much lower level, however it may complete correction or may temporarily bounce back from these points 18728 / 18535 / 18488 & 18211 and going up it will face resistance in the range of 19081----19360 and then 19520----19850, looking at overall picture it is suggested to avoid long call completely now till it at least move above 19360 and stays instead try sell call below 18923.60 or on the rise but below 19340 similarly  those who want to try long call can try above 18923.60 but with extreme caution because the bias is on the downside therefore it is better to avoid long call till it shows some strength.

 BSE- Sensex  closed at 29004.66 on 24-2-2015

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  is in correction mode now and it may complete correction or may temporarily bounce back from these points 28822 / 28609 / 28340 & 28044 and going up it will face stiff resistance up to 29365.Therefore in overall technical view it is suggested to avoid long call till it moves above 29365 and stays instead short call can be tried either on the rise but below 29340 or below 28975 with a stop loss of above 29040 similarly aggressive trader can try long call above 29005 with a stop loss of below 28975. Please note that the bias is on the downside as of now therefore any long trade initiated should be handled with extreme caution.

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.