CNX-BANK NIFTY--A TECHNICAL VIEW--19-2-2016

CNX--BANK NIFTY

Closed at 14298.15 on 18-2-2016(Open-14301.75/High-14385.65/Low-14180.90)

Support:- 14258/14120.90/13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

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 but filled the gap during the day and closed with a gain of 178.30 points. It is still looking very weak in comparison with nifty but the positive point is that it has made higher bottom on the line chart at 14119.85, therefore as long as it holds this bottom on the closing basis it could still move up from here. Moving up it will face resistance at 14386/14445/14590/14670/14754.65 and possibly the on-going up move may exhaust at any of these points so be watchful and alert. Since it is in down trend and the today's up move is a bear rally only as of now so the above points could also be used as sell point also provided weakness is visible in the prices during the day.   

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 19-2-2016 aggressive trader can try long call if it maintains above 14300 with a stop loss of below 14180 for a target of 14445/14590/14670 or near 14120 with a stop loss of below  14080  for a target of 14298/14386/14450-475/14590/. Similarly these target points can also be used as sell points provided price show weakness during the day with proper stop losses or sell call can be tried if it maintains below 14100 with a stop loss of above 14190 for a target of 13892/13810/13760. Please note that sell call should surely be attempted in the range 14650--14750 with a stop loss of above 14820.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. Since it has made higher bottom on the line chart long call can be tried as suggested above.But if price moves otherwise short call should also be tried and must be attempted in the range of 14650-14750. Please note that taking advantage of the 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.