CNX-BANK NIFTY--A TECHNICAL VIEW--14-1-2016

CNX--BANK NIFTY

Closed at 15871.85 on 13-1-2016(Open-15835.05/High-15956.25/Low-15532.25)

Support:-15762.20/1532.25/15301.65/15130.35.

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 behaved almost in an identical way Nifty has, it opened firmly today went higher but could not hold on at the upper level for longer and plunged down after some time but in the later half of the day bounced back sharply and closed reasonably above its one of the most important level of 15762.20 valid for the entire year of 2016. You would recall that I have been indicating that market may give short up move before it resume down move again and finally it is showing sign of that. (See my post for 12^th & 13^th Jan-2016). Today’s move somewhat indicates that a possible bottom is in place at 15532.25 for now, therefore an up move can be expected till it sustain above 15762.20 on the closing basis and finally holds 15532.25. However it does not seem to be the bottom for good and it may be taken out in coming months which may be kept in mind. But looking at present setup it is suggested to avoid short call if it sustains above 15762.20 and similarly long call can be tried above this mark. Moving up it will face resistance at 15895/16119/16300/16481/16705 levels. Avoid short trade above 15762.20 for sure. 

For 14-1-2016 it is suggested to try long call now or on dip but not below 15762.20 with a stop loss of below 15710. It is advised to watch the market for some time before initiating trade. Although today’s move indicate that a possible bottom is in place but since it is overall weak technically, therefore it is advised to handle long trade with extreme caution and care  and short trade can also be tried if it moves and sustain below 15730 for some time with a stop loss of above 15800.  

  Remark:-The long term trend is down. It seems that a bottom is in place today therefore long call can be tried as  suggested above and short call should be avoided above 15762.20 and can only be tried below 15730.

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.