CNX-BANK NIFTY--A TECHNICAL UPDATE-11-1-2016

CNX--BANK NIFTY

Closed at 16142.65 on 8-1-2016(Open-16135.40/High-16229/Low-16104.10)

Support:-15762.20/15301.65/15130.35.

Resistance:-16188.05/16192/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

After falling relentlessly for last four days it witnessed a relief rally today and closed the day with a gain of 68.80 points over previous day’s close. It was an extremely weak up move and lacked strength. Furthermore it is already very weak on the technical chart, so the chances are that it may begin further slide from here itself to test or break its major bottom of 15762.20 or may be after a little more upside and in that case the possible exhaustion points could be 16290/16377/16450/16580/16680. I once again reiterate that it is definitely sell on the rise market till it moves and sustain above 16932.50 or show some strength otherwise. In view of today’s weak relief rally it is suggested to avoid long call now.   

For day traders who wish to take advantage of  intra-day up move are advised to avoid long call completely if it remains below 16188 for the entire month of January-2016 and if it moves and sustain below  16049 then for the entire week starting from 11-1-2016. Similarly short trade should be tried below these levels.

For 11-1-2016 it is suggested to sell if it remains below 16188 with a stop loss of above 16300 or sell on the rise near 16290/16377/16450/16560/16650/ which could be the possible exhaustion points of today’s  relief rally with an authentic stop loss of above16700 . One can define and put their own stop losses also with the help of support and resistance point as mentioned above to manage their trade more effectively.

Remark:-The long term trend is down. Today’s relief rally was very weak and it could fizzle out any moment therefore broadly sell on the rise strategy should be adopted till it moves and sustain above 16932.50 or show strength otherwise. Long trades are completely ruled out till it shows some visible strength.  

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.