CNX-BANK NIFTY-A TECHNICAL VIEW--22-1-2016

CNX--BANK NIFTY

Closed at 15101.20 on 21-1-2016(Open-15132.20/High-15364.60/Low-14918.15)

Support:-14935.50/14858.90/14709.10/14338.65/13414.30.

Resistance:- 15269.65/15762.20/16188.05/16192/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

It had volatile a day today but after yesterdays huge loss it managed to close with a gain of 165.70. Although technically it is on a very weak footing and no technical parameters are supporting it except for RSI which is showing positive divergence on the daily chart, so it may give some rise from here before falling a fresh. The range for 22-1-2016 is between 14935---15270 and break on either side will decide the course of action for the day so watch out. It is important to mention here that it will show some stability only if it moves and sustain above 15762.20.

For 22-1-2016 both long and short call can be tried keeping the range of 14938—15270 in mind but certain specific trades are also suggested. Long call can be tried above 15170 with a stop loss of below 15100 but it would be relatively safe to try long call if it sustains above 15270 with a stop loss of below 15200. Moving up it will get resistance at 15300/15500/15638/15762.20.  Short call can be tried below 15100 with a stop loss of above 15170 or below 14918 with a stop loss of above 14970. Traders are requested to be circumspect in their trade position.

Remark:-The long term trend is down. But in view of RSI positive divergence long call can be tried as suggested above. Short call can be tried below 14918.  

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.