CNX BANK NIFTY--A TECHNICAL UPDATE--5-1-2016

CNX--BANK NIFTY

Closed at 16599.15 on 4-1-2016(Open-16966.35/High-16966.35/Low-16575.45)

Support:-16188.05/15762.20/15301.65/15130.35.

Resistance:-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.

 You are well aware that I have been alerting time and again (see my earlier post) that the on-going up move was a pullback rally and could end anytime. So it was a complete breakdown today and possibly the end of the move and beginning of a fresh down move. As it has broken recent bottoms on the line chart, various earlier bottoms on the bar chart and broken all its short term moving averages. Furthermore it has decisively broken its alert or benchmark point for long trade for the entire year of 2016 is 16932.50 & 16922.05 therefore long trade is completely ruled out till it moves and sustain above 16932.50 . Today's move clearly indicates that it is a sell on the rise market now till it moves above 16932.50 and sustain. However in between short up day could be there.

Moving down it could find support from the retracements points at 16523/16395 and also from its earlier bottoms at 16587.25/16188.05. Please note that if it breaks 16395 marks and sustain then the fall may accelerate which can drag it down below 16000 levels and it could test or break the bottom of 15762 it made on 7-9-15.

For 5-1-2016 it is suggested to sell on the rise but not above 16922  with a stop loss of above 16980  or sell below 16575 with a stop loss of above 16640.

 Remark:-The long term trend is down. The on-going up rally seems to have ended with the complete breakdown in the market today. So now sell on the rise strategy is suggested till it moves and sustain above 16932.50. Buying is ruled out as of now.

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.