CNX-BANK INDEX---A TECHNICAL VIEW----8-5-15

CNX-Bank Index

CLOSED AT  17376.90 ON 7-5-2015.

SUPPORT: - 17280 / 17246 / 16950 / 16560 / 15973.

RESISTANCE: -17502.45 / 17719.35 / 17738.90 / 18145 / 18211 / 18226 / 18338.10 / 18417.50 / 18433.80 / 18586.30 / 18736.65 / 18728.20 / 18875.45 / 18923.60 / 19038.50 / 19166 / 19376.85 / 19532.70. 

 (Figures in bold are important)

Bank Index opened on a negative note at 17751.40 and the open was the high also for the day thereafter throughout the day it steadily went down and made a low of 17246.55 before closing the day at 17376.90. After yesterdays huge fall of 671.89 points it fell again by 422.65 points today which is indicating gross weakness in it. Please note that if it maintains below 17503 mark for few days and fails to hold the level of 17280  then it is going to witness severe fall  in coming days and that may drag down the index to 16500---16000 level or may be to much lower levels. Since it is in down trend, I would therefore personally prefer to avoid long call instead would look for opportunity to try sell call at appropriate points. The long call can be tried by the aggressive trader if they wish to either above 17280 or above 17503 with proper stop losses. I once again reiterate that since it is in downtrend so it is suggested to avoid long call but if initiated then it should  be handled with extreme caution.

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 severely threatened. Since its short and medium trend is down therefore it is suggested to avoid long calls.

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.