NIFTY--CNX BANK INDEX--BSE SENSEX--Technical View For--5-2-2015

NIFTY CLOSED AT 8723.70 ON 4-2-2015

SUPPORT: - 8626-8600 / 8535.35 / 8445.60 / 8350 / 8280--200 / 8180 / 8160 / 8147.95 / 8065.45 / 7961.35.

 RESISTANCE: - 8753 / 8777 / 8809 /8841 / 8996.60 / 9039 / 9061 / 9704.

Nifty opened on a positive note but could not hold on at upper level and made a low of 8704.40 before closing the day at 8723.70.I once again reiterate that volatility is expected to remain till the Union Budget therefore market will provide opportunity for both long and short side trade, off course depending on the price movement but as off now the bias is on the down side therefore long call should be avoided or handled with extreme caution. Please note that the strong support for it is at 8626-8600 and if it fails to hold this level then it may trigger a deep down correction.

1. Long call can be tried if it maintains above 8777 or 8809 with a stop loss of below 8750 & 8775 or above 8825 with a stop loss of below 8800.I would advice to try long call only if it maintains above 8825.

2. Short call can be tried on the rise but below 8802 with a stop loss of above 8841 or below 8775 with a stop loss of above 8815. I would advice to try short call only if it maintains below 8775 for a target of 8700 & 8640.

CNX-Bank Index closed at 19174 on 4-2-2015

SUPPORT: - 19166 / 19061.35 / 18847--800 / 18769 / 18736.66 / 18728.20 / 18517.90 / 18428.

RESISTANCE: - 19560 / 19732.45 / 19778.95 / 19843.75 / 20610 / 20907.55 / 21097 / 21360.

Index  opened on a positive note  but closed the day with a loss of more than 200 points . It is exhibiting gross weakness if it is compared   with Nifty & BSE Sensex and seeking lower levels with each passing day and if it fails to hold the level of 18923 & finally 18728 then it may go in for much deeper correction which may be noted. Furthermore everybody is aware that Union Budget is approaching therefore market  may behave in an unpredictable   manner which will provide opportunity for both long and short side trade off course depending on the price movement but as off now the bias is on the down side therefore long call should be avoided or handled with extreme caution.

1. It is suggested to avoid fresh long call now but  aggressive trader can try long call near 18923 & 18728 with a stop loss of below  18720. Long call should be completely avoided below 18728 for sure.

2. Short call can be tried on the rise with a stop loss of above 19850. Short call can also be tried below 18923 with a stop loss of above 19020.

BSE- Sensex  closed at 28883.11 on 4-2-2015

SUPPORT: - 28822.37 / 28672 / 28555 / 28310 / 28156 / 28064.49 / 27851 / 27703.70 / 27512.80 / 27500 / 27485 / 27203.25 / 27091.38 / 26776 / 26469.42.

RESISTANCE: - 29047 / 29120 /29185 / 29844 / 30150 / 30271.

Sensex opened on a firm and positive note but could not hold and slipped in a negative territory and made a low of 28824.68 and closed the day with a loss of 117 points. It almost touched the important support level of 28822 today but managed to hold it. Please note that If it breaks this level and stays then it can trigger a deep down correction. As of now the bias is on down side therefore long call should be avoided or handled with extreme caution.

1. It is suggested to try long call only  if it maintains above 29230 with a stop loss of below 29130 . Avoid long call below 28822 for sure.

2. Short call can be tried on the rise with a stop loss of above 29250 or below 28822 with a stop loss of above 28900..

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.