CNX-BANK NIFTY--A TECHNICAL VIEW---16-11-2015

CNX--BANK NIFTY

Closed at 16932.85 on 13-11-15.(Open-16829.30/High-16962.55/Low-16741.80)

Support:-16670/16648/16587.25/16192/15762.20.

Resistance:- 17069/17174/17246/17355/17401.20/17434.05/17466.20/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20.

It  closed the weekend relatively on a better note in comparison with nifty but technical indicators are not giving any distinct sign of moving up from here. But since it has retraced more than 61.8% point which was at 16628 (it hit a low of 16587.25) in down correction from top and bottom of 18029.05 & 15762.20 respectively, secondly the range for the just concluded week was 17069—16587.25 and it closed near the upper band. Therefore in view of the above chances are that it could give an up rally from here before it witness any further fall.  So long call can be tried if it moves above 16970 and maintains with a stop loss of below 16890, add on position if it moves above 17069 and 17111.65 and maintains with a stop loss of below 16990 and 17030 respectively. Fresh long call should be avoided below 16930 and below 16830 for sure and if consistently starts trading below 16930 short call can be tried with a stop loss of above 16970.  Please note that whatever up move if it happens would be a pull -back rally only and it could possibly get exhausted at these levels 17138/17308/17478/17689 or earlier also. Since the trend is down therefore trades should be very cautious and careful in long trade.

Please note that its critical resistance point is at 17490(it changes every day) moving above this mark will show some strength in it.

Remark:-The long term trend is down and the short term trend has also turned down but it seems that a pull -back rally may happen, so one can initiate trade 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.