CNX--BANK NIFTY--A TECHNICAL VIEW--1-10-2015

CNX--BANK NIFTY

Closed at 17216.30 on 30-9-15.

Support:-17174/17216/16969/16759/16670/16484/16192/15762.20.

Resistance:-17246/17465/17502.45/17542.90/17569.80/17602/17719.

It opened firmly at 17404.75 and made a high of 17449.85 and then slipped down and made a low of 17100.20 before closing the day at 17216.30. Its movement was weak today but it managed to hold the key short term parameters but if it fails to show strength in next 3-4 trading session then it may go in for sharp downside correction. Please note that it will only show strength if it sustains above 17550(it changes every day).

For 1-10-2015 its short term trend line would be at 17220 and today it has closed just below this mark, so it has to move and close above 17220 mark tomorrow if the on going up move is to continue. Its short term moving average range is between 17211—16804(it changes every day), it has still not made lower bottom on the line chart and the recent bottom is at 17100.30 and top is at 17281.20,therefore no weakness as yet on this count. In view of the above technical parameters it will give first crack in the on going up move if it closes below 17220 then close below 17100 will indicate some weakness and potential weakness below 16670 mark. Similarly moving up it will only show some strength if it sustains above 17550(it changes every day). Looking at the above technical position the under noted trading strategy is suggested. It is needles to mention here that since the trend is down and today’s move was also weak, so it is suggested to avoid long call but if initiated should be handled with caution and care.

  

 TRADING  STRATEGY

1. Long call can be tried above 17211 or 17290 with a stop loss of below 17100 & 17200 respectively.

2. Short call can be tried if it sustains below 17220 or below 17100 with a stop loss of above 17290 & 17230 and below 17031 for sure with a stop loss of above 17150, aggressive trader can try short call on the rise around 17550 but not above this mark with a stop loss of above 17660.

Remark:-The long term trend is still down. It under performed today, it was down but still not out, so look out for a clear signal to initiate trade position. The bias is down, therefore I would personally look for an opportunity to sell only till it moves above 17550 and sustain, but one can try trade calls as suggested above. 

                                                                                          

Please 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.

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.