CNX-BANK NIFTY--A TECHNICAL VIEW-10-9-15

CNX-BANK NIFTY

Closed at 16631.50 on 9-9-15.

Support:-16452/16419/16188/16120/15933.

Resistance:-16670/16730/16781.55/16880/16984/17150.

The pull back rally which started yesterday continued its robust up move today also and went beyond the benchmark level of 16730 for remaining in the bear market territory and hit a high of 16781.55 but closed below the benchmark level, so still it is in the bear market. But today's price movement showed no signs of weakness therefore this rally may continue for another 2-3 days and may get exhausted in the range of 16837--16984--17150 or it may have already exhausted today since after crossing the threshold level of 16730(to remain in bear market) it could not sustain above it , so if it does not cross 16781.55 mark  tomorrow then it may be construed that the on -going pull back rally may be over.

It is needless to mention here that the pull back rallies are treacherous in nature and may end abruptly also.

Trading Strategy

1.Those who are still holding long position are advised to book at least part profit  in their trade at current levels because resistance levels are very close in the range of 16670--16730--16840 and stop loss is at much lower level of 16400.  Therefore it would be prudent to exit long call completely at current level and on the rise and think of fresh long trade only, if it moves above 16840 and sustain with a stop loss of below 16720.

2.Can try sell call at current level and on the rise but below 16840 with a stop loss of above 16880 or sell below 16400 with a stop loss of above 16470.

Remark:- Since it is in bear market territory and  it could not sustain the important level of 16730 today ,which is an indicative that this pull back rally may be over or near it, so long call is ruled out for tomorrow if it remains below 16840 instead sell call is suggested as mentioned 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.