CNX-BANK INDEX--A TECHNICAL VIEW---2-11-2015

CNX--BANK NIFTY

Closed at 17354.50 on 30-10-15.

Support:-17246/17174/16670/16648/16192/15762.20.

Resistance:- 17401.20/17434.05/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20/18411/18586/18728.20/18836.65/18832/18896.45/18922.60.

After four days of fall it had an up day today and this pull back move may last for another 1-2 days and possibly may end at 17499/17600/17740 levels or before. Since it is in downtrend now therefore it is suggested to avoid long call for sure but those who wish to take advantage of this pull back move can initiate long call above 17355 with a stop loss of below 17200 or near 17246 with a stop loss of below 17170(it could be a risky trade). It is important to mention here that the pull back rallies are treacherous in nature and can trap you unaware, therefore long trade if initiated should be handled with extreme caution and care. Please note that it will show some strength if it closes above its last long term moving average point of 17540(it changes every day) and sustain it for at least 3-4 days which seems difficult at this point of time. Therefore it is suggested to try short call instead on the rise near 17540—17650 range with a stop loss of above 17750 or if it consistently trades below 17350 with a stop loss of above 17450 or below 17170 for sure with a stop loss of above 17250.

Please note that long call should be avoided for the entire week starting from 2-11-2015 if it starts trading below 17170 and below 17111 for the entire month of November-2015 till it bounces back above this mark again and sustain. The bias is down now.

Remark:-The long term trend is down and short and intermediate trend is severely threatened therefore it is suggested to avoid long call. It would be safe to try short call as suggested above.

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.