CNX-BANK NIFTY--A TECHNICAL VIEW--9-10-2015

CNX--BANK NIFTY

Closed at 17474.30 on 8-10-15.

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

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

It opened on a flat to positive note at 17622.85 and the open was the high also and thereafter it steadily moved down and made a low of 17401.20 before closing the day at 17474.30. It decisively broke its short term rising trend line today which was at 17600 and also broke its most critical support point of 17539(it changes every day) and it is needless to mention here that it has not yet given up- side breakout from the neckline after the first failed attempt on 6-10-2015. In totality it is showing huge weakness and if does improve and show strength in next 2-3 days time then it may go in for deep down correction from here. The short term rising trend line and Head & Shoulder pattern neckline would be at 17750 and critical point at 17538.50(it changes every day) for 9-10-2015 and to show good strength it has to cross both the points and sustain particularly above 17750 chances of which seems bleak at this point of time similarly break below 17100 will confirm that this on-going up move may be over. Please note that on the line chart the up move seems to be over as it has already made lower top and bottom, so chances of going down seems much brighter then moving up from here, therefore it is suggested  to avoid long call now and  try it only above 17750  with a stop loss of below 17640.          

TRADING STRATEGY FOR-9-10-15

1.It is suggested to try long  trade only if it sustain above 17750 with a stop loss of below 17640.

2. Short call can be tried if it maintains below 17538.50 with a stop loss of above 17660.

Remark:-The long term trend is still down .It is exhibiting huge weakness therefore long trade is ruled out till it shows some  strength or move above 17750 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.