CNX--BANK NIFTY---A TECHNICAL VIEW--30-9-2015

CNX--BANK NIFTY

Closed  at 17281.20 on 29-9-15.

Support:-- 17246 / 17174/16983/16969/16759/16670/16484/16192/15762.20.

Resistance:- 17465/17502.45/17542.90/17569.80/17602/17719/17738.

As expected it had a volatile day, it opened with a huge down gap at 16859.75 and went down further and made a low of 16648.30 and then after the RBI’S rate cut announcement it zoomed up and made a high of 17461.35 before closing the day at 17281.20. It broke all the short term technical parameters intra -day but managed to hold all of them at the end of the day, so it is still looking balanced on the daily chart. Please note that the long term trend is still down and it will only show some strength if it moves above 17552(it changes every day) and sustain, it had moved past this mark number of times but failed to hold on. Since it had extremely volatile day today, it would be better to watch the price movement carefully for at least next two days for proper direction and then take action accordingly.

It is still within its broad range of 17730—16759(see post of 28-9-15),Its short term rising trend line would be at 17100 for 30-9-2015, its short term moving average range it between 17198—16801, although it made lower top on the line chart at 17255.30 but it did not break the bottom of 17031 and now made a higher bottom at 17100.30 and is in the making of higher top also ,it will show weakness only if it closes below 17100  mark and potential weakness below 16670 mark. In view of the above technical parameters one can initiate trade position as suggested below.

 TRADING  STRATAGY

1. Long call can be tried above 17290 or above 17311 with a stop loss of below 17 200 & 17240 respectively.

2.Can buy  near  17146—17100 but not below 17100 with a stop loss of below 17030. It could be a risky trade.

3. Short call can be tried below 17100 with a stop loss of above 17255 and below 17031 for sure with a stop loss of above 17150, aggressive trader can try short call on the rise around 17552 but not above this mark with a stop loss of above 17660.

Remark:-The long term trend is still down.  As expected it had a volatile day today, but despite wild swing during the day it is not showing weakness on the daily chart based on short term technical parameters. It hangs in balance now but the bias is still down, so watch its price movement for next two days for proper direction and then act accordingly.

                                                                                         

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.