CNX-BANK NIFTY--A TECHNICAL VIEW--14-10-2015

CNX--BANK NIFTY

Closed at 17554.85 on 13-10-15.

Support:-17502.45/17401.20/17246/17174/17070/16759/16670/16648/16192.

Resistance:-17652.35/17719/17729/17739/17821.90/17842.10/18035/18174.20.

It opened on a negative note at 17530.55 and made a high of 17632.25 and a low of 17473.70 before closing the day at 17554.85. In last six days it has violated its most critical support point of 17537.45(it changes every day) five times but managed to close above it, furthermore it has not yet  given an up-side breakout from the neckline which would be at 17765 for 14-10-2015 after its failed attempt on 6-10-2015 which is a weak indication. However please note that it will give first sign of crack if it breaks and close below its most critical support point of 17537.45(it changes every day) and sustain and then close below the recent bottom of 17401.20 on the bar chart and sustain and finally break and close below 17200 will confirm the end of this rally similarly a sustained  up- side breakout will show strength. As of now it seems that it hangs in balance with slight downward bias, therefore it is suggested to avoid long call till it gives up-side breakout and sustain.

TRADING STRATEGY FOR-14-10-15

1.It  would be safe to try long call only  if it sustain above 17765  for at least 2-3 days with a stop loss of below 17640.

2. Aggressive day trader can try long call above 17538 with a stop loss of below 17450.It could be a risky trade.

3. Aggressive trader can try short call near 17765 but not above this with a stop loss of above 17840.It could be risky trade but worth trying.

4. Short call can be tried if it maintains below 17538 with a stop loss of above 17660.It could be a risky trade.

Remark:-The long term trend is still down .It is exhibiting weakness in totality therefore long trade is ruled out till it shows some  strength or move above 17765 and sustain, instead short call can be tried 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.