CNX-BANK NIFTY-A TECHNICAL VIEW--29-10-2015

CNX--BANK NIFTY

Closed at 17373.15 on 28-10-15.

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.

It opened with a down gap at 17589.35 and made a high of 17682.45 and thereafter plunged down sharply and made a low of 17281.40 before closing the day at 17373.15.

Please note that it could not hold the up side breakout from the neckline it gave again on 23-10-2015 and fell sharply below it on the 4^th day today, decisively broken its short term rising trend line, also broken its last critical long term average support point of 17547.34(it changes every day) and recent multiple bottom range of 17434--17401 and closed below all the important points today, which indicates gross weakness in it and suggest that it could witness moderate to sharp fall in coming days, however in between short up rally cannot be ruled out . You would recall that I wrote about it  showing sign of fatigue and suggested to avoid long trade below 18035 mark , in fact I had given sell call below 17750(see my post for 27-10-2015).

There was a complete breakdown in it today, therefore it seems that the on-going up move has possibly ended for good, so it is suggested to adopt sell on the rise strategy now with adequate stop losses  till it closes above its first critical point of 17547.34(it changes every day) and sustain it for at least 3-4 days. It is important to mention here that since it gave gap down opening it could make an attempt to fill the gap in next 3-4 days time and if it does then it could come to 17738--17780 level. However nothing to fear in short trade even if it comes to this level because looking at overall technical parameters it seems that is not likely to sustain above its critical point of 17547.34 for 3-4 days. Please do not sell beyond 17780 and the final stop loss would be above 17860, safe trader should not sell beyond 17570 and the stop loss would be above 17670. It is suggested to avoid long trade now.

Remark:-The long term trend is down. It had a complete breakdown today so buying is ruled out till it closes above its critical point of 17547.34 and sustains it for 3-4 days, instead it is suggested to try short call on the rise with an adequate stop loss.

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.