CNX-BANK NIFTY-A TECHNICAL VIEW--7-1-2016

CNX--BANK NIFTY

Closed at 16433.15 on 6-1-2016(Open-16505.45/High-16614.95/Low-16377.65)

Support:-16188.05/15762.20/15301.65/15130.35.

Resistance:-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 for last three days and during the day it went below the retracement level of 16395.58 which is 76.40% point derived from the top and bottom of 17498.35 and 16188.05. Please note that it took 13 days to make the top of 17498.35 from the bottom of 16188.05 but it has eaten up more than 76.40% of the entire up move in just three days which speaks of tremendous weakness in it. Since it retraced below 76.40% point it could possibly stage a short up move from here may be for a day or two before fresh down slide begins provided it holds 16363 level, but if it moves below 16363 and sustain fall may accelerate which can drag it down below 16000. It is needless to mention here that down move is on and it is sell on the rise market till it moves and sustain above 16932.50. 

For 7-1-2016 in view of the above it is suggested to initiate fresh short trade below 16363 or sell on the rise but not above 16824, if it moves above 16824 and sustain then give a pause for fresh selling and try short call again near but not above 16922. The authentic stop loss in both the situation would be above 16980. But short stop loss of above 16860 is suggested for the short call initiated below 16824. The possible short points are 16700/ 16750/16815. It is suggested not to go in for long trade for an anticipated one or two days up move because that may not be lasting. So buying is not recommended till it shows some strength.

 

Remark:-The long term trend is down. Since down move is on therefore broadly sell on the rise strategy is suggested till it moves and sustain above 16932.50. Trades can be initiated 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.