CNX-BANK NIFTY--A TECHNICAL VIEW--8-9-2015

CNX-BANK NIFTY

Closed at 15790.10  on 7-9-2015.

It is already in the bear market territory (see my post for 7-9-15) and today it has given fresh breakdown and gone below the low of previous week which was at 15933.15 and this break is exhibiting further huge weakness in it and slowly and steadily it is expected to open new downside range in coming days/weeks, however in between the short up rallies cannot be ruled out but it is better to avoid taking advantage of these rallies in the bear market. Please note that it may take support for a while in the range of 15530--15425--15130 and may stage a short pull back rally from here before fresh breakdown down happens.

Going down it will find good support at 15535/15425/15130.35/14709.10/14338.65 and moving up it will encounter resistance at 15933.15/16130/16223/16670.55/16730.

Trading Strategy

1. It is suggested to avoid long call for safe and positional trader but for day trader if they wish to can try long call above 15790 with a stop loss of below 15750 or above 15935 with a stop loss of below 15880. Avoid long call below 15760 on 8-9-15 for sure.

2. Sell on the rise but below 15933 with a stop loss of above 15970 or below 15760 with a stop loss of above 15800.

Remark:-Since it is in bear trend therefore it is suggested to look for selling opportunity rather than trying buy call because one may get trapped in buy call in the bear market up rallies. Therefore sell on the rise till clarity on bottom formation emerges and that seems far away at this point of time.

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.