CNX-BANK NIFTY--A TECHNICAL VIEW---11-2-2016

CNX--BANK NIFTY

Closed at 14588.45 on 10-2-2016(Open-14740.20/High-14779.15/Low-14490.20)

Support:-14338.65/13414.30.

Resistance:- 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/

Today it opened with a down gap and broken the bottom of 14834.05 and 14754.65 on the line and the bar chart respectively. It filled the gap immediately and thereafter went down further breaking its double bottom at 14709.10 and closed the day way below the aforesaid bottoms and with a loss of 286.64 points, which is bad sign. It is exhibiting huge weakness on the chart and indicates that the down move may continue but in between short relief rally cannot be ruled out from time to time, but it is suggested to avoid taking advantage of these rallies.  The bias is on the downside, therefore long trade is ruled out till it shows some strength at the lower levels. It would find good support at 14356-14338 and break below 14338 will trigger fresh fall .In view of the above sell on the rise strategy should be followed now but be alert in short trade if it maintains above 14754.65.

For 11-2-2016 can sell now or on the rise but below 14754.65 with a stop loss of above 14840 or can sell below 14580 with a short stop loss of above 14620 for a target of 14356-14338 and then 14164.

Remark:-It is in long term bear trend. Since it has broken all its recent bottoms and other support levels, therefore buying is ruled out for now till it exhibit some strength .Short call can be tried 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.