CNX-BANK NIFTY--UPDATE FOR THE WEEK STARTING FROM--21-12-2015

CNX--BANK NIFTY

Closed at 16594.30 on 18-12-15.(Open-16719.45/High-16737.70/Low-16572.75)

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

Resistance:-16648.30/ 16670.55/16771.80/17174.70/17246.55/17302.55/17499/17502.45/17565/17652.35/17719/17738/17821/18035/18174.20.

As expected it had a down day today but the concerning part is that it almost erased yesterday’s gain which creates doubt that is this up move over? but certain technical indicator  suggest that it could still bounce back from here and may go beyond 16950 before it get exhausted provided it holds 16480 mark, so hope of moving up is still there. However the up journey may not be smooth as it will encounter resistance from its Fibonacci points at 16689/16844/16998/17189,from its short term moving averages which is in the range of 16567---16746---16884 now(it changes every day)and from its medium term moving averages which is in the range of 16884---17000---17150(it changes).Similarly going down it will find support at 16587.25/16497/16188/15762.In view of the above it is suggested that those who are holding long position now should exit trade if it moves below 16480 and sustain and fresh long call should only be tried if it  moves and sustain above 16660 with a stop loss of below 16560. It is suggested to monitor your trade keeping the above figures in mind for better result. It is advised to avoid short call till it holds 16410.

It is important to mention here that its technical setup on the weekly and monthly chart is still very weak and as of now indicates that it may seek much lower levels in coming weeks/months after this on-going up move get exhausted, but it has to be reviewed from time to time because interpretation will change with change in prices.  

 

Remark:-The long term trend is down. Today’s down correction was huge but it could still bounce back from here and give a reasonable rise till it holds 16480. Therefore try long call as suggested 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.