CNX-BANK NIFTY--A TECHNICAL VIEW--16-9-15

CNX--BANK NIFTY

Closed at 16739.55 on 15-9-15.

Support:--16580/16452/16188/15888/15762/15130.35..

Resistance:- 16781.55/16880/16984/ 17150.

 It opened flat to negative at 16905.80 and could not cross the previous day’s high of 16937.90 and made a high of 16919.45 for the day but failed to keep the yesterday’s up momentum on and steadily went down and made a low of 16681.55 for the day before closing near the low at 16739.55. Today’s move was not encouraging at all and exhibited weakness, however it managed to close above the bear market territory threshold level of 16730, furthermore it is also above the lower band of the short term moving averages which is between 16984--16450 for 16-9-15, so there is still some hope for the long trader that market could recover from here tomorrow but this may go other way also and it could slide as it a pull -back rally and these rallies can fizzle out anytime. Therefore for long trader it is suggested to get alerted below 16670 in their trade and exit position if it sustain below 16640, please note that the authentic stop loss for long trade on 16-9-15 would be below 16450, fresh long call can only be tried either if it moves above 16782 or 16940and sustain, it would be safe to try long call above 16940. Short call can be tried on the rise but below 16940 with a stop loss of above 16985. Looking at today’s movement the bias seems to be on the downside but one should respect the daily price movement and take action accordingly in their trades. Kindly note that break below 16590 may trigger fall and the fall may accelerate below 16450 and below 16188 sharply.

Remark:-The trend is down and I prefer not to go against the trend. The  on- going up move  is a pull- back rally and it may end anytime and one may get caught unaware in these rallies therefore , personally I would not like to take advantage of the  up move  instead I would look for opportunity to initiate sell trade.

 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.