CNX-BANK NIFTY--A TECHNICAL VIEW--17-2-2016

CNX--BANK NIFTY

Closed at 14166.45 on 16-2-2016(Open-14602.25/High-14602.25/Low-14136.80)

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

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

It opened with an up gap today and the open was the high also and it immediately drifted down and thereafter steadily moved down during the day and closed below the low of the previous day. It was a perfect copy book key down reversal today, therefore in all probability the pullback move is over. But it may witness huge volatility in coming days in light of the ensuing   National Budget Event-2016, so still there is a weak chance of a short rise from here as long as it holds its recent bottom of 13971.50 on the line chart. Please note that it is already in the bear market for quite some time ,therefore, I once again reiterate that do not try long call to take advantage of the in between bear market rallies. It is therefore suggested to sell on the rise at appropriate points but not above 14445 as of now.    

I cautioned not to try long call in the pullback rally as these rallies can fizzle out abruptly also and this is what has exactly happened today (see my post for 16-2-2016).Therefore it is suggested to try long call only after if it shows sustained strength for some time at lower levels or if it moves and sustain above 14754.65 level, chances of happening this does not seems bright as of now.  In fact weekly and monthly chart are so badly placed and as of now indicates that it may seek unbelievably lower levels in coming weeks/months( see my earlier post)and  the possible time frame could be between March to May-2016. However chart has to be viewed on regular basis and any positive development on the chart can change the interpretation which may please be noted, so watch out.   

For 17-2-2016 sell below 14120 with a stop loss of above 14180 and add on position below 13970 with a stop loss of above 14120 for a target of 13810/13750/13690-650 or sell on the rise but not above 14445 for now with a stop loss of 14550.   

 Remark:-It is in long term bear trend now. In view of key downward reversal today long call is completely ruled out ,instead short call should 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.