CNX-BANK NIFTY--A TECHNICAL VIEW--10-2-2016

CNX--BANK NIFTY

Closed at 14875 on 9-2-2016(Open-14830/High-14964.90/Low-14760.80)

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

Resistance:- 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/

It opened with a down gap today and went down further and intra-day broken the bottom of 14834.05 on the line chart and tested the bottom of 14754.65 on the bar chart but at the end of the day respected both the bottoms and closed above them but  with a loss of 171.80 points. It also filled the gap completely during the day. The technical setup is looking weak but the silver lining is that even after today’s fall it has not broken its bottom on the line and bar chart. Therefore as long as it holds 14834.05 and 14754.65 on the closing basis there is a ray of hope that it could still move up from here before the fresh fall begins. Please note that the fresh fall looks inevitable as of now and it will seek much lower levels in coming weeks/months. Therefore every rise should be used for selling and buying should only be attempted if it closes above 15370 and sustain.

For10-2-2016 In view of the above fresh short call can safely be tried if it maintains below 14834 and then below 14754 for sure with a stop loss of above 14880  and above 14834 respectively for a target of 14595 or sell on the rise but not above 15370 with a stop loss of above 15430. Moving up the possible sell point could be at 15060/ 15174/15340/.It is suggested but not recommended that those who want to take advantage of the in between short relief rally can try long call above 14875  with an alert point at 14834 and exit point below 14754 it could be a risky trade mind you.

Remark:-It is in long term bear trend. But despite today’s fall it is still holding on to its recent bottom on the bar and the line chart. So it could still move up before fresh fall begin, therefore take you’re trading call as suggested above but one should be circumspect 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.