CNX-BANK NIFTY-A TECHNICAL VIEW-15-1-2016

CNX--BANK NIFTY

Closed at 15609.80 on 14-1-2016(Open-15612.10/High-15803.20/Low-15453.40)

Support:- 15130.35/14858.90/14709.10/14338.65/13414.30.

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 opened with a huge negative bias and went down further and broke yesterdays low and later in the day recovered some lost ground but at the end of the day closed with a loss of more than 260 points, more importantly it has closed way below its one of the most important level of 15762.20 valid for the entire year of 2016. It is looking terribly weak on the technical chart and it seems that it may fall further from here and moving down it could find support at 15130.35/14858.90. To show some strength and to get a foothold it has to move and sustain above 15762.20 which my please be noted. Therefore it is suggested to avoid long call below 15762.20 similarly short calls can be tried below this level.

For 15-1-2016 short call can be tried on the rise but not above 15762.20 with a stop loss of above 15830. Long call can only be tried either near 15130 or if it moves and sustain above 15762.20 with a stop loss of below 15060 and 15700 respectively. It is advised to watch the market for some time before initiating trade. 

  Remark:-The long term trend is down. In view of the above long call be avoided until and unless it moves and sustain above 15762.20 or try near 15130, instead short call can be tried below this level with suggested stop loss.

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.