CNX-BANK NIFTY--A TECHNICAL OBSERVATION---4-11-2015

CNX--BANK NIFTY

Closed at 17325.60 on 3-11-15.

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.

After yesterdays up day it had a down day today, so it has made a lower top of 17354.50 on the line chart but since the bottom is intact therefore it can be assumed that the pull back move is still on till it break and close below the bottom of 17212.20 on the line chart and below the bottom of 17170.35 on the bar chart or it may end near 17499/17600/17740 level (see my post for 2-11-2015). 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 could be a risky trade mind you. Therefore it is suggested to try short call instead if it consistently trades below 17354 with a stop loss of above 17500 or below 17212 &17170 for sure with a stop loss of above 17270. Please note that it will show some strength if it closes above its last long term moving average point of 17535(it changes every day) and sustain it for at least 3-4 days.

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. The bias is down now therefore break below these points can be used for initiating short trades with stop loss of above 17270 and 17190 respectively.

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.