CNX-BANK NIFTY-A TECHNICAL VIEW-12-1-2016

CNX--BANK NIFTY

Closed at 16016.25 on 11-1-2016(Open-15979.05/High-16156.80/Low-15840.60)

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 huge down gap today and went down further thereafter in later half of the day it gave sharp up move and recovered all the losses at one point of time but finally ended the day with a loss of 126.40 points. It went very close to its important bottom of 15762.20 but did not violate it. But it is still way below its previous bottom of 16188.05 which is bad sign and it is extremely weak on the chart and still sell on the rise market but since it has respected its aforesaid important bottom and some technical parameter are also indicating that it may move up from here before it resume down move again provided it holds the bottom of 15762.20 and moves and sustain above the previous bottom of 16188.05, so be watchful here. Moving up the possible exhaustion points could be 16188/16310/16455/16598.

 It is important to mention here that avoid long call if it remains below 16188 for the entire month of January-2016 and below 16049 for the entire week starting from 11-1-2016.

  

For 12-1-2016 it is suggested to sell below 15965 with a stop loss of above 16060 for a target of 15770 or sell on the rise only if it gives potential sign of exhaustion, the suggested sell point are 16188/16310/16455/16598. I once again repeat that look for weakness in the price movement before initiating fresh short position on the rise. The authentic stop loss for sell on the rise trade would be above 16650. One can define and put their own short stop losses also with the help of support and resistance point as mentioned above to manage their trade more effectively. Similarly aggressive and contrarian trader can try long call above 16050 with a stop loss of below 15960 or try it, if it moves and sustain above 16188.05 with a stop loss of below 16110.

Remark:-The long term trend is down. In view of the above both short and long call can be tried depending on the price movement and 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.