CNX-BANK NIFTY--A TECHNICAL VIEW--7-10-2015

CNX--BANK NIFTY

Closed at 17605.35 on 6-10-15.

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

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

It opened with an up gap at 17822.70 and made a high of 17827.15 and thereafter steadily moved down and made a low of 17493.75 before closing the day at 17605.35. It did give upside breakout from the neckline today but could not hold it and fell below it which indicates some sort of weakness however it may make an attempt to cross the neckline again in next 2-3 days time, if it does and cross the neckline and sustain then it can give good rise. Its neckline would be at 17740 for 7-10-2015.  Furthermore it did break its very critical level of 17539(it changes every day) intra-day but managed to close above it, so overall today’s move was not encouraging and in fact showed weakness. Please note that it will show good strength once it gives up side breakout from the neckline (17740) and sustain similarly it will show potential weakness if it sustain below 17539(it changes every day) and 17150.

TRADING STRATEGY  FOR-7-10-15

1. It would be safe to initiate long trade if it sustain above 17740 with a stop loss of below 17640.

2. Aggressive trader can try buy call near 17539 but not below this with a stop loss of below 17450.It could be a risky trade.

3. Short call can only be tried if it sustains below 17500(it is trend line support) with a stop loss of above 17660.

Remark:-The long term trend is still down but short and intermediate trend is looking up. Since it had a failed attempt for up -side breakout from the neckline it is suggested to initiate fresh long trade if it sustains above 17740 only. Short trade should be avoided for now and can only be tried if it consistently trade below 17500 with suggested 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.