CNX-BANK INDEX-A TECHNICAL VIEW--5-11-2015

CNX--BANK NIFTY

Closed at 17221.05 on 4-11-15. (Open-17449/High-17449/Low-17175.65)

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.

It has already made a lower top of 17354.50 on the line chart (see my post for 4-11-2015) and today violated the bottom of 17212.20 on the line chart and tested the bottom of 17170.35 on the bar chart intra-day but at the end of the day managed to hold both the bottoms, so as long as it holds both the aforesaid bottoms on closing basis and moves up and gives close above 17360 and sustain then this up move may continue and if it is so then this move may get exhausted at these 17499/17600/17740 level , but looking at weak price movement in last few days a smooth up move seems difficult from here. Please note that it will gain some strength only once it closes above 17531(it changes every day) and sustain. Since the present trend is down therefore it is suggested to avoid long call but those who wish to take advantage of the pull back move may try long call only above 17360 with a strict stop loss of below 17260.  It is suggested to try short call instead below 17170 for sure with a stop loss of above 17250.

Please also note that long call should be avoided for the rest of the on- going

week if it starts trading below 17170 and below 17111 for the entire month

of November-2015 till it bounces back above this mark again and sustain.

Remark:-The long term trend is down and short and intermediate trend is severely threatened therefore it is suggested to avoid long call instead it would be safe to 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.