CNX-BANK NIFTY--A TECHNICAL VIEW--22-2-2016

CNX--BANK NIFTY

Closed at 14344.20 on 19-2-2016(Open-14243.45/High-14395.85/Low-14207.35)

Support:- 14338.65/14258/14120.90/13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It opened on a negative note and went down further and thereafter moved in a short range and in the last hour of trade it steadily moved up and closed near the high of the day. It is still not showing good strength, but the up move may still continue further for few days provided it holds 14119.85 on the closing basis which may please be noted. Therefore long call can still be tried but with utmost caution and care. Moving up it will face resistance at 14445-470/14590/14670/14754.65 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 on-going 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 price movement.   

 Please note that it is a bear rally only and these rallies can end abruptly also, I would therefore once again caution safe trader that not to take advantage of the in between up rallies in the bear market as it can trap you unaware at higher levels. However aggressive intra-day trader can try long call as mentioned below. The long trade can relatively safe if attempted above 14754.65.

For 22-2-2016 long call can be tried if it maintains above 14350 with a stop loss of below 14250 for a target of 14445/14590/14670. Similarly these target points can also be used as sell points also provided price show weak movement during the day with proper stop losses or sell call can be tried if it maintains below 14180 with a stop loss of above 14260 for a target of 14120/13971/13892/13810. 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 is respecting the 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 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.