CNX-BANK NIFTY--A TECHNICAL VIEW--16-2-2016

CNX--BANK NIFTY

Closed at 14445 on 15-2-2016(Open-14120.90/High-14548.15/Low-14120.50)

Support:-14338.65/14120.90/13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

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/

It opened on a firm and positive note and much above the buying point of 14000(see my post for 15-2-16) and thereafter steadily moved up and closed with a whopping gain of 473.50 points.  The major technical parameters are still not good but looking at today’s up move it seems that this may continue for few more days provided it holds 14258 and 14120 on the closing basis. Moving up it would face resistance at 14590/14650-14690/14755—14775/14830--15000 and possibly the on-going up move can exhaust at any of these points so be watchful and alert. Similarly support for it exists at 14405/14258/14120/13971/13810. Sustained break below 14258 will signal the end of this rally. Please note that it will gain some strength if it moves above 14754.65 and sustain. Therefore short call should be avoided above this mark.

It is also important to mention here that the on-going up move is a pullback rally and can fizzle out any time, therefore for safe trader it is suggested to avoid long call  but aggressive day trader can still try but it  should be handled with utmost caution and care.  

For 16-2-2016 since it gave good rise today and maintained at higher level ,therefore it seems that this up move may continue for few more days , so long call can be tried above 14550 with a stop loss of below 14440 or try on dip near 14258 but not below this  mark with a stop loss of below 14200. Since the trend is down and it is a pullback rally only as of now, therefore an aggressive and contrarian trader can try short call also near 14640--14690 and then near 14754.65 but not above this with a stop loss of above 14840.   

 Remark:-It is in long term bear trend now. But today’s up move was robust and it may continue for few days, so long call can be tried as suggested above. Similarly the on-going up move is a relief rally only therefore short call can also be tried at suggested points.

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.