CNX-BANK NIFTY--A TECHNICAL VIEW--22-9-2015

CNX--BANK NIFTY

Closed  at 17542.90 on 21-9-15.

Support:--17246/17174/17156---17015.75/16983/16879/ 16781.55/16670/16525/16452/16192.

Resistance:-17569.80/17602/17719/17738/17842/18034.

It opened on a huge negative note at 17186.05 but recovered completely and made a high of 17571.30 for the day before closing near the high at 17542.90. Despite opening 200 points down from previous day’s close , it did not make any effort to fill the gap it created that day, so it is possible that it can still make an attempt to fill the gap in next two days and if it does then it can come down to 17015.75 mark which may be noted. Anyway it is showing good strength on the daily chart as of now but it will show real strength if it moves above 17585(it changes every day) and sustain, therefore avoid short call above this mark for sure till it breaks it again.   

It has support from its short term rising trend line at 17350(it changes every day) for 22-9-15 and thereafter from its short term moving averages which is in the range of 17070—16755(it changes every day), so break below 17350 mark tomorrow will indicate that it may correct from here but it will show potential weakness if it breaks below the aforesaid moving average range which is much lower. Therefore for those traders who are still carrying long trades should take decision on their existing position keeping the above point and range in mind to safeguard their gains. However for those who want to initiate fresh long trade can try near 17350 or above 17602 with a stop loss of below 17300 & 17570 respectively. It would be safe to try long call if it sustain above 17602. Although apparently it is not showing any sign of weakness here but since 17569---17602 is a critical range for the week and if it fails to cross it then it may correct sharply from here.

Remark:- The trend is down but the on-going up move is still  going strong and showing no sign of budging down therefore short call should be avoided in general  above 16755 on 22-9-15 but aggressive trader can go contrarian and try short call here, if it does not move above 17585 in first two hours of trade with a stop loss of above 17625. The fresh long call can be tried and existing long position should be handled as suggested above. The bias is on the upside as of now.

                                                                                            

                                                                                       

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.