CNX-BANK NIFTY--A TECHNICAL VIEW--28-1-2016

CNX--BANK NIFTY

Closed at 15534.60 on 27-1-2016(Open-15648.40/High-15673.95/Low-15442.20)

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.

It opened on a firm note and once again gave upside break from the weekly range upper band of 15575.65 but could not hold on above it today also and closed with a loss of 26.50 points. It is lacking the required strength to move up but also not showing the desired weakness either.  Furthermore it is above its short term moving averages and certain other technical indicators also pointing towards an up move provided it holds 15300 on the closing basis then the chances are that it could give moderate to reasonable rise from here, it seems  that the on-going up rally is likely to continue as of now. But long call should be avoided below 15497 for sure. Please note that it will only get stable if it moves and sustains above 15762.20.

For 28-1-2016 long call can be tried above 15576 with a stop loss of below 15497.  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).

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.