CNX-BANK NIFTY--A TECHNICAL VIEW--19-10-2015

CNX--BANK NIFTY

Closed at 17912.85 on 16-10-15.

Support:-17821/17738/17719/17652.35/17502.45/17434.05/17401.20.

Resistance:-18035/18174.20/18411/18586/18728.20/18836.65/18832/18896.45/18922.60/18980.65/19100.55/19229.05.

As anticipated it gave a decisive up-side breakout from the inverse Head & Shoulder pattern neckline today and now if it holds 17720(it changes) level for next 3-4 days then moderate to good rise can be expected and it can also be assumed that Bank Nifty may achieve the Head & Shoulder pattern up-side target which is in the range of 19300—19500 maximum(see my post for 28-9-2015) in coming days. Moving up it will face stiff resistance at 18200/18411/ 18586/18740/18922.60. In view of the breakout buy on dip strategy is suggested but not below 17765(neckline) with a stop loss of close below 17700. Please note that if it falls below the neckline then that will be the first sign of weakness and finally break and close below 17537(it changes every day) and 17400 will end the on-going move. Therefore long call should be completely avoided if it falls below the neckline and sustain.

TRADING STRATEGY FOR-19-10-15

1.Long call can be tried on the dip but not below 17765 with a stop loss of close below 17700.

3. Short call can be tried if it consistently trades below 17700 with a stop loss of above 17780.It could be a risky trade.

Remark:-The short and intermediate trend is looking up. Since it gave a decisive breakout from the neckline today, therefore it is suggested to try long call on dip till it holds the neckline mark of 17765(it changes).   

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.