CNX-BANK NIFTY-A TECHNICAL VIEW-18-2-2016

CNX--BANK NIFTY

Closed at 14119.85 on 17-2-2016(Open-14165.25/High-14186.10/Low-13892.10)

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

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

It opened flat and went up little higher then moved down and went way below the previous day’s low and also closed below the low. As thought it exhibited volatility today and it is expected to continue till the Budget Event is over therefore intra-day traders should be extremely careful in their trade position. Unlike nifty it had a lower close today, but the silver lining is that it made higher low of 13892.10 on the bar chart and still holding its recent bottom of 13971.50 on the line chart, therefore as long as it holds 13971.50 on the closing basis and 13892.10 on intra -day basis it could move sideways to up from here. Moving up it will face resistance at 14260/14346/14450-475/14590/14670/14754.65. Please note that if it begins to move up tomorrow then it may last for few days and could possibly exhaust at any of the above mentioned points. 

Please note that I would once again caution safe trader that not to take advantage of the in between up rallies in bear market, as these rallies are treacherous in nature and can trap you unaware at higher levels. However aggressive intra-day trader can try long call if they wish too at appropriate points.  The long trade can safely be attempted only if it moves and sustain above 14754.65.

For 18-2-2016 aggressive trader can try long call if it maintains above 14190 with a stop loss of below 14100 for a target of 14260/14346/14450-475/. Similarly sell call can be tried if it maintains below 14100 with a stop loss of above 14190 for a target of 13892/13810/13760. I once again repeat that since it is in down trend therefore long trade should be handled with extreme caution and care.

 Remark:-It is in long term bear trend now. Although it closed negative today but still holding on to its recent bottom on the line chart and made higher low on the bar chart, so long call can be tried as suggested above. But if price moves otherwise short call must be tried. Please note that taking advantage of the expected pullback rally could be risky, so be alert and watchful in long trade.

  

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.