CNX--BANK INDEX---A TECHNICAL VIEW FOR THE WEEK STARTING FROM---27-4-2015.

CNX-Bank Index

CLOSED AT 18001.90 ON 24-4-2015.

Range for the week ended on 24-4-2015 was:-18500.30-----17798.65.

SUPPORT: -17798.65 / 17719 / 17502.45 / 16561.

RESISTANCE: -18211 / 18226 / 18433.80 / 18490 / 18688 / / 18736.65 / 18728.20 / 19038.50. 

 (Figures in bold are important)

Index moved in a range of 701.65 points during the week ended on 24-4-2015 and closed the week with a loss of 343.65 points. It is weak on technical charts as it is well below its critical points of 18736.65 & 18728.20 and all its short, medium and some of the long term moving averages and last of such average is at 17224 for 27-4-15 and break below this mark can put the long term uptrend in real danger, furthermore short and medium term moving averages are advancing for negative crossovers and if it happens and maintain for sometime then it could be devastating for a down move. Its recent bottom is at 17719.37 and in all likely-hood it seems that it is going to break it in a day or two. Going down it will find very good support in the range of 17500---17224---17100 and if it violates this range then the next support will be in a much lower range of 16400----16200.

After looking into all the technical aspects, I am of the opinion that it is likely to form a bottom in the range 17500----17100   possibly either on 28^th or 29^th April, 2015 and may stage a up rally from there, but I am not sure whether the expected bottom would be for good or it could be broken, this can only be judged once bottom is made and then seeing the intensity of the expected up rally.  I would therefore suggest to try sell call on 27-4-15 below 17980 with a stop loss of above 18050 for a target of 17800---17700. Please note that the sell position should be squared off in any case in the range of 17500----17200 and long call can be tried around this range if it holds it with a stop loss of below 17100. It is important to mention here that for the resumption of smooth uptrend, it has to go beyond the long term moving average upper band which is at 18406 now and sustain and then  to cross 18737 & 18923.60 mark and sustain.

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.

REMARK:-Long term up trend still intact but threatened and if it moves below 17224 and sustain then long term uptrend may end. Both long and short trade can be initiated as suggested above.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

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.