CNX-BANK NIFTY--A TECHNICAL VIEW---18-9-2015

CNX--BANK NIFTY

Closed  at 16964.80 on 16-9-15.

Support:--16880/16781.55/16670/16580/16452/16188.

Resistance:- 17029/17150/17214/17353/17450/17569.80.

As expected it moved up (see my post for 14-9-15) and up movement is still on and it is showing strength as of now. It has a support from short term rising trend line at 16950 for 18-9-15 and break below this will indicate some weakness but in broader perspective as long as it holds 16739 it is o.k for long trades and below this mark it will indicate real weakness and will show potential weakness below 16528(it changes every day), therefore it is suggested to avoid fresh long trade below 16739 and exit long position below 16670 & below 16528  for sure similarly    if it  moves above 16984(it changes every day ) and sustain then this rally could extend to 17150—17214—17353--175770 before it get exhausted, chances of moving up from here are looking quite possible as of now . I expect it to exhaust in the range of 17214--17400. Therefore fresh long call can be initiated above 16984 with a stop loss of below 16940. Please note that it will gain good strength if it moves above 17593(it changes every day) and sustain. Looking at overall technical parameters it is suggested that short call should be avoided for now and can only be tried if it consistently trades below 16730 with a stop loss of above 16790 and add on position below 16670 & 16528 with a stop loss of above 16710 & 16580 OR try it in the range of 17214---17400 with a stop loss of above 17460 for sure.

Remark:-The trend is down but the pull back rally is on and it is showing strength, therefore those who want to ride this rally can try long calls as suggested above but short call should be avoided till the price movement shows potential weakness or try it 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.