NIFTY--CNX BANK INDEX--BSE SENSEX--Technical View---6-2-2015

NIFTY CLOSED AT 8711.70 ON 5-2-2015

SUPPORT: -8640 / 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.

As expected nifty had a wild swing today, it opened on a positive note at 8733.10 and was trading in a positive range for quite some-time before shooting up all of a sudden to the level of 8838.45  but could not sustain at the upper level and slipped down and made a low of 8683.65 for the day before closing the day  at 8711.70. Today’s move exhibited gross weakness in it, therefore it is suggested to avoid long call till it gives visible sign of correction completion. However market volatility and swing provide opportunity for both long and short side trade for intra-day trader as it gave today, off course depending on the price movement but as off now the bias is on the down side. 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. I would also like to mention here that BSE Sensex broke it critical support level of 28822 intra- day today but managed to close above it. So be watchful nifty may follow it too.

1. Long call can be tried only if it maintains above  8809 with a stop loss of below  8775 or  8841 with a stop loss of below 8800.I would advice to try long call only if it maintains above 8841.The aggressive trader can try long call near 8626—8600 with a stop loss of below 8550.

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.

CNX-Bank Index closed at 19051.90. on 5-2-2015

SUPPORT: - 18923.60 / 18847--800 / 18736.66 / 18728.20 / 18517.90 / 18428.

RESISTANCE: - 19166 / 19242 / 19560 / 19610 / 19877.65 / 20103—272 / 20610 / 20907.55 / 21097 / 21360.

Index opened on a flat note at 19170.15 and went higher and crossed the previous day’s high and made high of 19444.65 for the day but could not sustain there and slipped fast from there and made a low of 18977.90 before closing the day at 19051.90.Technically it is looking weak on the chart but its critical support exist at 18923 & 18728,if it breaks 18728 level and stays then it may go in for much deeper correction which may be noted, therefore it is suggested to avoid long call till it gives visible sign of correction completion. However market volatility and swing provide opportunity for both long and short side trade for intra-day trader, off course depending on the price movement but as off now the bias is on the down side.

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.

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 28850.97 on 5-2-2015

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 flat to positive note at 28912.38 and made a high of 29277.83 for the day and then went down and made a low of 28753.29 before closing the day at 28850.97. It has critical support at 28822 and it broke this level during the day today but managed to close above this at the end. Please note that if it breaks it again and stays below it then it may go in for much deeper correction. Furthermore it is technically  weak  also, therefore long trade should be avoided till clarity  on correction completion emerges and below 28822 for sure.

1. It is suggested to try long call only if it maintains above 29280 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 29280 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.