CNX-BANK NIFTY--A TECHNICAL VIEW--29-9-2015

CNX--BANK NIFTY

Closed  at 17100.30 on 28-9-15.

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

Resistance:- 17174 / 17246/17502/17542.90/17569.80/17602/17719/17738.

It opened on a firm note at 17286.25 and made a high of 17384.75 thereafter in the later part of the 2^nd half trading session it went down sharply and made a low of 17073.95 before closing the day near the low at 17100.30. Despite the down day today it is not showing the weakness which nifty is showing. It is holding on the short term rising trend line which would at 17025 for 29-9-15, it is within its short term moving averages range which is between 17161—16798(it changes every day)for 29-9-15, although it has made lower top on the line chart but not yet broken the bottom of 17031 to make a lower bottom and  yet to break bottom of 16759 on the bar chart. So comparatively it is looking  better on the chart but not that great may be it is holding on because of the RBI’S credit policy announcement  tomorrow and once this event is over it may start a fresh down move ,because major constituent stocks in it are very badly placed on the technical chart. Therefore it is suggested to initiate fresh trading call after the credit policy announcement is over ,but aggressive trader can  try trading calls as suggested below.

Trading Strategy 

1.Long call can be tried above 17260 or above 17311 with a stop loss of below 17 140 & 17240 respectively.

2.Can buy above 17161 with a stop loss of below 17030. It could be a risky trade.

3. Since it had made lower top on the line chart Short call can be tried below 17255 with a stop loss of above 17320 and below 17025 for sure with a stop loss of above 17150, aggressive trader can try short call on the rise to around 17560 but not above this mark with a stop loss of above 17660.

 Remark:-The long term trend is still down. But in view of RBI’S credit policy announcement, it would be safe to initiate fresh trade position after the RBI’S event is over. The bias is still down.

                                                                                          

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.