CNX-BANK NIFTY--A TECHNICAL UPDATE---22-12-2015

CNX--BANK NIFTY

Closed at 16825.15 on 21-12-15.(Open-16593.40/High-16848.60/Low-16580.65)

Support:-16771.80/16670.55/16648.30/ 16587.25/16497/16192.25/16188.05/15762.20/15301.65/15130.35.

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

As anticipated it bounced today and posted a gain of 230.85 points, this robust bounce back wasn’t expected. It crossed almost all its short term moving averages except for one which is at 16873(it changes every day) this could be a resistance point. Today’s move showed strength and technical indicator still suggest that it could go beyond 16950 mark in 2-3 days, but not to forget that this is a pullback rally and cannot be trusted as it can fizzle out anytime, therefore it is suggested to have cautious approach in trading long. So for 22-12-2015 it is suggested to hold existing long position as long as it remains above 16771 one can add fresh long position also above this level, but if it starts trading below 16771 book at least part profit in your existing long trade and exit trade position below 16745 because the authentic stop loss for all long trade would be below 16580 and if you wait till then all your profit would be wiped out and you would end up losing. So the suggested short stop losses are below 16771/16745/16648, it is therefore advised to have your own stop loss depending upon your trade initiation point so that you can get out of the unfavorable trade at a minimum loss. Please note as long as it holds 16580 mark chances of this rally continuing for few days looks good, however moving up it would encounter huge resistance in the range of 17000—17150---17335.       

Remark:-The long term trend is down. It had a robust bounce back today and looks good above 16771 so existing long call should be held and fresh long call can also be tried above this 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.