CNX-BANK NIFTY--A TECHNICAL UPDATE--1-1-2016

CNX--BANK NIFTY

Closed at 16922.20 on 31-12-15.(Open-16916.05/High-16972.25/Low-16896.65)

Support:-16787/16741//16704/16670.55/16648.30/ 16587.25/16497/16192.25/16188.05/15762.20/15301.65/15130.35.

Resistance:- 16946.10/17174.70/17246.55/17302.55/17499/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20.

It had a weak day today and it closed near the low of the day and just 4.29 points above previous day’s close which indicates  some weakness, furthermore it is showing less strength in comparison with Nifty. However it is still above its all short term moving averages which are in the range of 16889---16740(it changes every day) for 1-1-2016 and marginally above its recent bottom of 16917.90 on the line chart. But since it achieved its expected target, it made reversal bar yesterday and broken short term rising trend line also therefore in view of this it is suggested to avoid long call now. For 1-1-2016 try long call only if it moves and sustain above 16995 with a stop loss of below 16917 on the closing basis or below 16880 during the day. Avoid fresh long call below 16917 for sure. Although it has not given potential signal for short call but in view of the weak undertone short call can be tried below 16889 with a stop loss of above 16947. Aggressive short call can only be attempted below 16740.

 Remark:-The long term trend is down. It is suggested to avoid long call below 16917 for sure and can only be tried as suggested above. Short call can be tried as mentioned 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.