CNX-BANK NIFTY-A TECHNICAL VIEW---13-1-2016

CNX--BANK NIFTY

Closed at 15734.80 on 12-1-2016(Open-16080.40/High-16080.40/Low-15699.40)

Support:- 15301.65/15130.35.

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

It moved in an identical way Nifty has, it also broke its most important bottom of 15762.20 today which is extremely weak indication and if it sustain below it then the speed of the fall may accelerate. It is important to mention here that 15762.20 level is one of the most important point also for the entire year of 2016, therefore it is advised to avoid short call above this mark and avoid long call below this mark in the year 2016 and moving down look out for potential sign of bottom formation then only try long trade otherwise sell on the rise strategy has to be followed at proper points with adequate stop loss till it exhibit visible strength.

For 13-1-2016 since it is below its important point of 15762.20 short trade can be initiated below this mark with a stop loss of above 15845 but in view of the pattern it made on the candlestick chart on 12-1-16, it is suggested to try short call below 15699 with a stop loss of above 15780 because if it does not break this level then it could give a short up move also. In case of up move those who wish to try long call can try if it moves and sustain above 15762.20 with a stop loss of below 15690. Please note that we are in the downtrend and trying long call for short up move could be risky, so long trade if initiated should be handled with caution and care.

Remark:-The long term trend is down. It is suggested to try short trade below 15699.

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.