CNX-BANK NIFTY--A TECHNICAL VIEW---7-9-2015

CNX-BANK NIFTY

Closed at 16129.10 on 4-9-2015

It is terribly bad on the technical chart and now it is down by more than 20% from the top of 20907.55, which means it has already entered into the bear market territory and the threshold limit for the same is at 16730, so if it moves above this mark and sustain then only it can come out of the bear market. You are well aware that the bear markets are very painful and witness continuous value erosion, therefore long trades are ruled out below 16730 and it should only be tried when sign of bear trend culmination are visible. Therefore as of now it is clearly sell on the rise market.

Furthermore  most of the technical parameter on daily, weekly and monthly chart indicate moderate to huge fall ahead provided bear trend continues, and if it does then it could be heading for much lower levels which could be in the range of 14338---12800. Please note that break below 12800 can drag it down to unbelievable lower levels. However in between up rallies cannot be ruled out.

One of the most important observation I want to share is that Cnx-Bank Nifty movement has huge bearing on the Cnx-Nifty's movement ,since the Bank Nifty is already in the bear market therefore it is likely that Nifty may follow suit in coming days. The threshold level for Nifty getting into bear market territory is at 7295. So watch out.

Trading Strategy

1.It is suggested to avoid long call now but those who want to ,can try above 16130 or near 15940 with a stop loss of below 16090 and 15880 respectively.

2.Sell call suggested below 16120 and below 15930 for sure with a stop loss of above 16160 and 15980 or on the rise near 16670--16730 with a stop loss of above 16800.

Support:-15933/15888/15130/14709/14338.65/13414/12738.

Resistance:-16670.55/16730/17569.80.

Remark:- Since it is in bear territory therefore long call should be avoided  below 16730 for sure instead short call can be tried at appropriate levels with an adequate stop loss.

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.