CNX-BANK NIFTY--A TECHNICAL VIEW--21-1-2016

CNX--BANK NIFTY

Closed at 14935.50 on 20-1-2016(Open-15059.50/High-15533.45/Low-14754.65)

Support:-14858.90/14709.10/14338.65/13414.30.

Resistance:- 14956.95/ 15154.35/ 15165.20/ 15206.30/15762.20/16188.05/16192/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

 It is needless to mention here that technically it is on a very weak footing but yesterdays rise gave a hope that it could move up further from here but unfortunately it could not hold yesterdays gain even for a day and today opened with a down gap and in intra-day hammered it down by more than 600 points and closed with a loss of 334.15 points which speaks of gross weakness in it. Please note that intra-day it went below its 261.8% retracement point of 14764.54 and came near one of its important double bottom at 14709 but closed reasonably above these levels, so the range of 14764—14709 can be construed as good support point for now but break below this range can drag it down to 14338/13425, breaking of this range seems very likely in coming days/weeks as of now.  Please note that it will show some stability only if it moves and sustain above 15762.20.

  

 Since the overall technical position is very fluid therefore it is suggested to avoid long call till it exhibits some visible strength at the lower levels or moves above 15762.20 and sustain. Long call can also be tried successfully if it moves and sustain above 15270 with a stop loss of below 15150. Short call can be tried on the rise now but not above 15150 with a stop loss of above 15210 in this on- going week.  

Remark:-The long term trend is down. It could not sustain yesterdays up move which speaks of terrible weakness. It is therefore suggested to try long call only if it sustains above 15270. Short call can be tried 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.