CNX-BANK NIFTY--A TECHNICAL VIEW--9-11-2015

CNX--BANK NIFTY

Closed at 17086.50 on 6-11-15.(Open-17003/High-17143.60/Low-16911.60)

Support:-16911.60/16670/16648/16192/15762.20.

Resistance:- 17111.65/17174/17246/17355/17401.20/17434.05/17466.20/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20/18411/18586/18728.20/18836.65/18832/18896.45/18922.60.

It is showing gross weakness on the technical chart but it could witness huge volatility and wild swing both ways on 9-11-2015 because of Bihar election results outcome, therefore be watchful and only initiate trade when market stabilizes. Since it is in downtrend therefore it is suggested to avoid long call now and try it only if it closes above 17111.65 and sustain,  the aggressive trader can try long call now or on dip but not below 16995 with a stop loss of below 16911, it could be a risky trade mind you. Please note that it will show some strength if it moves and closes above 17519(it changes every day) and sustain. Looking at the overall chart pattern and at some of the important technical indicators it is expected to hit 16600 levels very soon and may head further lower therefore long call would not be a safe option now instead short call can be tried below 17111.65 with a stop loss of above 17175 or below 16995 for sure with a stop loss of above 17115.

Please note that long call should be avoided below 17111.65 for the entire month of November-2015 and if it goes below 16911 then for the entire week starting from 9-11-2015 till it bounces back above this mark again.

Remark:-The long term trend is down and the short term trend has also turned down therefore long trade is completely ruled out for me as of now. It would be better to look for opportunity to sell on the rise at proper points now or try short trade as suggested above. Looking at price behavior for last few days’ short trade seems safer option. 

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.