CNX-BANK NIFTY-A TECHNICAL VIEW--1-2-2016

CNX--BANK NIFTY

Closed at 15522.40 on 29-1-2016(Open-15140.15/High-15554.90/Low-15136.85)

Support:-15136.85/15130.35/14858.50/14754.65/14709.10/14338.65/13414.30.

Resistance:- 15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

After two days of down move it had a breakdown today in the early trade and it broke its important point of 15300 also intra-day but staged a solid recovery in the 2^nd half of the day and managed to close well above its important point of 15300 in fact near the high of the day which is a good sign. Furthermore it has made higher bottom on the line chart after long time, still above some of its short term moving averages and certain technical indicators also points towards further rise.  Therefore  as expected (see my last few post) now it seems that this rally may continue for few more days provided it holds its recent bottom of 15381.45 on the line chart on the closing basis (it is likely to hold). It is important to mention here that it will get stable only if it moves and sustain above its most crucial and one of the benchmark point 15762.20 valid for the entire year of 2016.

In view of the above it is suggested that one can buy above 15523 or above 15562 with a stop loss of below 15480, if this stop loss is triggered then try long call near 15385 with a stop loss of below 15300 or else when it moves above 15562 mark again. Please note that it would be relatively safe to try long call above 15562. Moving up it will face resistance at 15638/15683/15762.20/15910&16184. Similarly good support exists at 15425/15300/15136.85/15130.35.

 Please note that profit should also be booked in favorable trade from time to time at the appropriate points(see support and resistance) so that you can take advantage of the market swings and can re- enter again at lower levels.

It is important to mention here that the on-going up move is a pullback rally as of now and as you are already aware that these rallies can end abruptly also, so be extra watchful in long trade.

Remark:-The long term trend is still down. Today’s stupendous up move suggest that this on-going up move may continue for few more days, therefore long call should be tried as suggested above. Please not to forget that it is a pullback rally as of now therefore long trade should be handled with extreme caution and care.   

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.