CNX--BANK NIFTY
Closed at 17207 on 29-10-15.
Support:- 17174/16670/16648/16192/15762.20.
Resistance:- 17246/17401.20/17434.05/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20/18411/18586/18728.20/18836.65/18832/18896.45/18922.60.
After yesterday’s huge breakdown it
had a quite day today, it opened flat to positive at 17388.40 and made a high
of 17400.20 and then made a low of 17178.85 before closing the day near the low
at 17207. It is exhibiting huge weakness technically. Please note that it closed
below its important bottom of 17246.55 today and tested the next important
bottom of 17174.70 but managed to hold but if it breaks and close below this
bottom and sustain then it can drag it down to 16670/16648/16192& 15762
levels, chances of which are looking reasonably fair. The overall technical
parameters also indicate that it may witness moderate to sharp fall in coming
days/weeks. Therefore long call should be avoided for sure and every rise
should be used to initiate sell trade at appropriate points and with an
adequate stop loss till it closes above
17544(it changes every day) and sustain it for 3-4 days (see my post for
29-10-2015) . For 30-10-2015 sell call can be tried below 17174 with a
stop loss of above 17280.
Remark:-The long term
trend is down. In view of yesterday’s breakdown it is suggested to avoid long
call now instead 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.
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Thank you for sharing your views.