CNX-BANK NIFTY--A TECHNICAL VIEW--27-1-2016

CNX--BANK NIFTY

Closed at 15561.15 on 25-1-2016(Open-15667/High-15682.65/Low-15495.10)

Support:-15130.35/14858.50/14754.65/14709.10/14338.65/13414.30.

Resistance:- 15626.90/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

After the robust gain of more than 390 points on 22-1-2016, as expected it did give upside break from the weekly range upper band of 15575.65(see my post for 25-1-2016) but could not hold on above it and also failed to build on the previous days gain today and  had a small gain of only 63.60 points at the end  and just closed below the weekly range upper band, but it is still above its short term moving averages, so the hope of this rally to continue for some more time is still alive as long as it holds 15300 on the closing basis. But fresh long call should be avoided below 15497 for sure. Please also note that it will only get stable if it moves and sustains above 15762.20.

For 27-1-2016 long call can be tried above 15576 and above 15667 with a stop loss of below 15485 and below 15560 respectively. Avoid long call below 15497 but can be tried near 15300 with a stop loss of below 15250(it could be a risky trade but worth trying). Although short call could be a risky proposition here, but in view of today’s subdued movement, it can be tried if it maintains below 15485 with a stop loss of above 15525.

Remark:-The long term trend is still down. In view of the above chances of the on-going up move to continue is still alive as long as it holds 15300 on the closing basis.  I once again reiterate that since it is a pullback rally as of now long trader should be extra vigilant in their trade position.   

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.