CNX-BANK NIFTY--A TECHNICAL UPDATE---8-1-2016

CNX--BANK NIFTY

Closed at 16073.85 on 7-1-2016(Open-16256.55/High-16256.55/Low-16049.75)

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.

It opened with a down gap and thereafter went down sharply and broke the bottom of 16188.05 from where it rallied up to 17067.45. Please note that it took 13 days to accomplish the top of 17067.45 but eaten up the entire move in just four days which itself speaks of tremendous weakness in it and now it heading to test or break its recent major bottom of 15762.20 which it made on 7.9.2015. However it may take a breather in  between but the steady  trend is down, therefore buying is not suggested. It is definitely sell on the rise market till it moves and sustain above 16932.50 or show some strength otherwise.   

For 8-1-16 it is suggested to sell below 16040 with a stop loss of above 16130 or sell on the rise but not above 16714and the possible good sell points could be 16380/16465/16580/16710 with a stop loss of above 16760. It is suggested not to go in for long trade for an in between up move because that may not be lasting. So buying is not recommended till it shows some visible strength.

 

Remark:-The long term trend is down. Since down move is on therefore broadly sell on the rise strategy is suggested till it moves and sustain above 16932.50. Short trades can be initiated as suggested above. Buying should be avoided 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.