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

CNX-BANK NIFTY

Closed at 16350.95 on 8-9-2015.

I was expecting a pullback rally from a little lower range of 15535--15425--15140 but it happened from the current level of 15790,it is really difficult to time these rally. It gave a robust up move today and hit a high of 16419 for the day before closing the day near the high at 16350.95, today's rally showed tremendous strength and if it manages to hold the level of 16180 this rally may last for another 2-3 days and moving up it would tough resistance at 16460/16671/16730/16880/ 16985.Going down it will find support at 16180/16120/15933/ 15888/15819/15762/15535/15130.

It is important to mention here that it is still in bear market territory , therefore one cannot rely on the single days strength of the pull back rally because these rallies may fizzle out abruptly also therefore one should be vigilant in long trades. Please note that it can come out of the bear territory if it moves above 16730 and sustain.

Trading Strategy

1.Those holding long position can hold but get alerted below 16180 and exit trade below 16120,since stop loss is much lower, therefore it is suggested to book at least part profit in your trade, so in case market chooses to go down you cannot end up making losses.

2. Day trader can take fresh long call above 16460 with a stop loss of below 16400.

3. Short call can be tried if it consistently starts trading below 16180 with a stop loss of above 16240 or near 16670--16730 with a stop loss of above 16780.

Remark:-Since the trend is bearish, therefore despite today's robust pull back up move one should be circumspect in the long trade because this rally may end any moment .

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.