CNX-BANK NIFTY--A TECHNICAL VIEW--14-12-2015

CNX--BANK NIFTY

Closed at 16342.50 on 11-12-15.(Open-16751.35/High-16758.70/Low-16260.10)

Support:-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 fell by more than 770 points intra-day during the week and ended the week with a loss of more than 550 points. It is showing weakness on the technical chart, furthermore it is well below its threshold level of 16726 for bear market which indicate that it is already in the bear market territory, so if it does not move above this mark in a short span of time the on- going fall may accelerate. Although it has broken many short bottoms in this fall but it is still reasonably above its recent major bottom of 15762.20 which it made on 7-9-2015 but it looks like that in all probability it is likely to break or test the said bottom in coming days/ weeks. So be alert and watchful.

Please note that its short range for now is between 16726—16587.25—16260 and break below 16260 can drag it down to 15762—15700 range. The bias is on the downside and it is sell on the rise market as of now, therefore it is suggested to avoid long call now but those who wish to can try as long as it is above 16260 with a stop loss of below 16180 but it could be a risky trade and not suggested or try near 15760—700 range with a stop loss of below 15650(looks comparatively safe).Similarly short call can be tried below 16260 with a stop loss of above 16350 or on the rise at appropriate levels(see support & resistance levels). It is suggested to keep the above range in mind while initiating any trade because that will help you to control your trade better.

It is suggested to avoid long call for the entire month of December -2015 till it moves above 16587.25 and then 16726 and sustain, avoid long call if it moves below 16260 for the  entire week starting from 14-12-15 till it bounces back above it again and sustain.

Remark:-The long term trend is down. In view of the above observation it seems that further fall is likely, therefore it is better to avoid long call till it shows some strength instead short call can be tried on the rise at appropriate levels with proper stop loss or 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.