NIFTY---CNX BANK INDEX---BSE-SENSEX---Technical View For-26-2-2015

NIFTY CLOSED AT 8767.25 ON 25-2-2015

SUPPORT: - 8726.75 / 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 / 8841 / 8856.85 / 8873 / 8913.45 / 8996.60 / 9040 / 9065 / 9338.

Nifty opened on a firm note at 8801.90 and made a high of 8840.65 and then was moving in the range of 8816—8830 for quite sometime before plunging down and made a low of 8751.40 and finally closed at 8767.25. It is not showing required strength therefore it is suggested to avoid long call now but if already initiated should be handled with extreme caution and care because the bias is on the downside as of now instead I would advice to try short call. The potential support points for it are at 8726.75 / 8691 / 8626.95 / 8559 & 8470 and resistance points are at 8793.40 / 8808.90 & 8860.

Trading strategy for 26-2-2015 .

1. SELL CALL:-

(A) Sell on the rise but below 8857 with a stop loss of above 8875 .

(B) Sell if it consistently trades below 8754 with a stop loss of above 8770

(C) Sell below 8726.75 for sure with a stop loss of above 8755.

2, LONG CALL:-

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

(B) Aggressive trader can try long call if it maintains above 8775 with a stop loss of below 8754.

 

CNX-Bank Index closed at 18733.05. on 25-2-2015

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

RESISTANCE: -18736.65 / 18923.60 / 19166 / 19200 / 19445 / 19532.90 / 19778.95 / 19844 / 19884 / 19992 / 20275 / 20610 / 20907.55.

Index is showing huge weakness on the chart and today it closed just above its 2^nd most important level of 18728 and break below this can pull it down to much lower levels, chances of which are looking reasonably good as of now, therefore long call is ruled out till it starts showing some strength instead I would advice to try sell call. The potential support points for it are at18728 / 18535 / 18488 & 18211 and it will face resistance in the range of 19072----19255 and then 19365----19700.

Trading strategy for 26-2-2015 .

1. SELL CALL:-

(A) Sell on the rise but below 18923.60 with a stop loss of above 18975.

(B) Sell on the rise but below 19250 with a stop loss of above 19300.

(C) Sell below 18728 for sure with a stop loss of above 18750.

2, LONG CALL:-

(A) One can try long call above 18923.60 or above 19250, with a stop loss of below 18890 & 19200 respectively but it would be safe to try it above 19250.

(B) Aggressive trader can try long call if it maintains above 18740 with a stop loss of below 18700 or above 18923.60 with a stop loss of below 18890.

 BSE- Sensex  closed at 29007.61 on 25-2-2015

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 29115.32 and made a high of 29269.83 and then was moving in a short range for quite some-time before plunging down and made a low of 28967.61 and finally closed at 29007.99. It is not showing required strength therefore it is suggested to avoid long call now but if already initiated should be handled with extreme caution and care because the bias is on the downside as of now instead I would advice to try short call. It has critical support at 28822.37 and resistance at 29350.

Trading strategy for 26-2-2015 .

1. SELL CALL:-

(A) Sell on the rise but below 29340 with a stop loss of above 29370.

(B) Sell if it consistently trades below 28975 with a stop loss of above 29040

(C) Sell below 28875.94 for sure with a stop loss of above 28900.

2, LONG CALL:-

(A) One can try long call above 29183 or above 29350 , with a stop loss of below 29135 & 29300   respectively but it would be safe to try it above 29350.

(B) Aggressive trader can try long call if it maintains above 29040 with a stop loss of below 28975.

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.