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

CNX--BANK NIFTY

Closed at 15314.45 on 1-2-2016(Open-15547.75/High-15565.50/Low-15281.35)

Support:-15300/15130.35/14858.50/14754.65/14709.10/14338.65/13414.30.

Resistance:- 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/ 17174.70/17246.55/17499/17502.45/17569/17652.35/17827/18029.05.

It opened on a firm note and thereafter had a breakdown and it went down sharply and closed near the low of the day with a loss of 207.95 points .Today’s move showed gross weakness which is concerning . Furthermore after making higher top and bottom it immediately made lower top and bottom on the line chart and also broke almost all its short term moving averages except for one which is at 15313 for 2-2-2016 and holding one of its important points of 15300 where it could find solace. Therefore as long as it holds 15300 level on the closing basis there is some hope that it can move up again but long call should only be tried  if it move and sustain above 15562.

For-2-2-2016 it would be safe to try long call if it moves and sustain above 15562 with a stop loss of below 15500.But aggressive trader can try long call above 15300 and the near 15136 with a stop loss of below 15270 and 15090 respectively. Please note that it could be a risky trade mind you therefore it is suggested and not recommended.  Moving up it will face resistance at 15548/15638/15683/15762.20/15910&16184. Similarly good support exists at 15300/15136.85/15130.35/14754.65.

Remark:-The long term trend is still down. Today’s breakdown is concerning, therefore long call should only be tried above 15562.

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.