CNX-BANK NIFTY--A TECHNICAL VIEW--21-9-2015

CNX--BANK NIFTY

Closed  at 17409.15 on 18-9-15.

Support:--17353/17214/17156---17015.75/16879/ 16781.55/16670/16525/16452/16192.

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

It opened with a huge up gap at 17184.25 and made a high of 17602 and low of 17156.20 and closed the day at 17409.15. Today’s movement showed tremendous strength and intra-day it crossed the strength showing mark of 17593(see my post for 18-9-150) but could not hold above it. For 21-9-2015 the strength showing level is at 17589, therefore if it moves above this mark then avoid short call for sure till it breaks it again and sustain.

It is showing better strength in comparison with nifty but note that the gap it created today is still there and if it makes an effort to fill this gap on 21-9-2015 then it can come down to 17015.75 level , if it does and fails to hold this  level then it can go down sharply. Although it closed 200 points below from the top of the day today but price movement is still ok but support points are at much lower levels first being at 17130(it changes every day) from the short term rising trend line and the other one is from short term moving averages which is in the band of 17020-16613 (it changes every day) and it is well above these levels now. Please note that break below 17130 mark will show first sign of crack on the rising trend and finally it will gather downside momentum when it moves below 16613 and sustain, so if traders wait for aforesaid levels to break to show desired weakness to exit their trades then all their profit will be wiped- out. Therefore it is suggested for traders who are still carrying long position to book profit now and on the rise too if they get a chance because authentic support levels are much lower. Those who want to initiate fresh long trade can try if it moves above 17602 and sustain with a stop loss of below 17570 or base their trade decision on above mentioned support range. In fact I would take a contrarian bet and try sell call on the rise but below 17589 with a stop loss of above 17640.

Remark:-The trend is down but the pull back rally is on and it is difficult to ascertain now whether this rally has completed on near completion but since the support levels are much lower now, therefore profit booking is suggested for sure on the existing long trades and fresh long trade should only be initiated if it moves above 17602 and sustain. Instead short call can be tried 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.