CNX-BANK INDEX---A TECHNICAL VIEW--4-5-2015

CNX-Bank Index

CLOSED AT 18338.10 ON 30-4-2015.

Range for the week ended on 30-4-2015 was:-18431.90-----17738.90.

Range for the month of April-15 ended on 30-4-2015 was:-19038.50---17738.90

SUPPORT: -18226 / 18211 / 18163.90 / 17738.90 / 17719.35 /  17502.45 / 16561.

RESISTANCE: -18433.80 / 18490 / 18736.65 / 18728.20 / 18875.45 / 18923.60 / 19038.50 / 19166 / 19376.85 / 19532.70. 

 (Figures in bold are important)

Bank Index is showing much strength in comparison with Nifty & Bse-Sensex and it has closed   the month of April-15 in mid range and week near the higher range. It did not violate the bottom of 17719.35 it made in the month of March-15 and made a higher bottom at 17738.90 in the month of April-15 and closed hugely above it , which looks positive but moving up it will find very tough resistance from the multiple tops and long term moving average between 18434—18450 and then in the range of 18740---18925. I would therefore suggest to try long call only if it moves above 18440 and sustain with a stop loss of below 18400 but aggressive trader can try long call now also above 18340 or on the dip but not below 18245 with a stop loss of below 18235. Please note that if it fails to cross 18434—18450 range or if it crosses this range and fails to hold then short call can also be tried below 18430 with a stop loss of above 18470.

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. The bias is slightly on the upside, however both long and short trade can be initiated depending on the price movement and 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.