CNX-BANK NIFTY--A TECHNICAL UPDATE-17-12-2015

CNX--BANK NIFTY

Closed at 16579.40 on 16-12-15.(Open-16464.50/High-16640.40/Low-16363.90

Support:-16497/16260/16192.25/15762.20/15301.65/15130.35/14709.10.

Resistance:- 16587.25/16648.30/16670.55/17174.70/17246.55/17302.55/17499/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20.

It consolidated in last two days and gave a reasonable up move today, so it seems that this up rally may continue for few days. Therefore it is suggested to adopt buy on dip strategy as of now but not below 16497 with a stop loss of below 16450 .Moving up it will face resistance from its Fibonacci retracement point of 16689/16844/16998/17189 and from its short term moving average range which is between 16565—16680—16793--16912(it changes every day). Looking at this resistance point it seems that the up journey may not be smooth but certain technical parameters indicates that it could go beyond 16700   as long as it holds 16497 mark, so watch out. But not to forget that as of now it looks like a pull back rally and it may end abruptly also therefore it has to be seen how it take shape and culminate in coming days. It is therefore suggested that the long trade should be handled with extreme caution and care. It is advised to avoid short call for now.  

 IMPORTANT:- Although present technical set up indicate that it can move up further from here but it is  important to note  here that FOMC meeting outcome tomorrow may impact the market either way, so it is suggested  to initiate trade after market stabilizes.

Remark:-The long term trend is down. It seems that it is in a pull back mode and this move may continue for few days, therefore long call can be tried as long as it holds 16497 mark.

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.