CNX-BANK NIFTY--A TECHNICAL VIEW--1-3-2016

CNX--BANK NIFTY

Closed at 13946.40 on 29-2-2016(Open-13818.90/High-14222.30/Low-13407.25)

Support:-13946/13892.10/13810.60/13519.90/ 13407.25/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 14120.90/14258/14331.20/14338.65/14344.20/14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45.

As expected it had huge volatility and wild swing of more than 800 points intra- day today but it closed the day on a positive note with a gain of 154.95 points, volatility may still continue for some time but it is not good for the market which may please be noted.

 Its Technical setup is very weak and it is already in the bear market territory for a long time now ,therefore it seems that the last two days  rise may fizzle out here also and it may resume down move again tomorrow or in case it rise from here then the possible exhaustion point could be at 14140/14245/14350. It is therefore suggested to avoid long call completely for now and follow sell on the rise strategy till it moves above 14470 and sustain. Moving down it will find support at 13892/13810/13520/13414/13407.25/13303.60/13150-13040/12738.60/12530 where it could take a breather again and bounce for a while as it did today from 13414 point or may give a relief rally from any of these points for a day or two before resuming down move again, so be alert and watchful.  Please note that sustained break below 13303.60 can drag it down to unbelievable lower levels.

For 1-3-2016 sell call can be tried on the rise or below 13790 with a stop loss of above 13900 for a target of 13687/13520/ 13414/13407/13303/13150—13040/12900. Aggressive trader can try sell call below 13890 also with a stop loss of above 13960 for a target of 13810 then as mentioned above.  The possible sell points on the rise could be at 13995--14040/14133/14190--14250/14350—14430. It is suggested to use self defined stop losses for every sell point with the help of resistance level mentioned above to manage your trade better. Buying is ruled out for now.

 Remark:-It is in long term bear trend since 4-1-2016. It is suggested to adopt sell on the rise strategy or as suggested above but long trade should be completely avoided for now. 

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.