CNX-BANK NIFTY--A TECHNICAL VIEW---19-1-2016

CNX--BANK NIFTY

Closed at 15020.80 on 18-1-2016(Open-15165.20/High-15270.40/Low-14956.95)

Support:-14858.90/14709.10/14338.65/13414.30.

Resistance:- 15130.35/15166/15762.20/16188.05/16192/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

It has been falling relentlessly for last few days with no respite. It is already in a long term bear trend, so it is difficult to predict that when this fall is going to be arrested, but moving down it will find good support at 14709.10/14338.65/14130 hopefully it could take a breather at any one of these levels and stage a short relief rally. In view of the above it is suggested not to go for long trade till this fall is arrested and it start showing some sign of strength or try it if it moves and sustain above 15210 with a stop loss of below 15130. Short call can be tried on the rise but below 15154 with a stop loss of above 15210.

It is important to mention here that looking at the time taken in the making of tops and bottoms in recent past it seems that it could make a short bottom by   the end of this week or early next week but at what level has to be seen. Therefore traders are requested to be circumspect in their trade position. I once again reiterate that it is in long term bear market.

Remark:-The long term trend is down. Since it has been falling continuously and is in long term bear market therefore it is suggested to avoid long call till the on-going fall is arrested and it shows strength.

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.