CNX-BANK NIFTY--A TECHNICAL VIEW---23-2-2016

CNX--BANK NIFTY

Closed at 14373.25 on 22-2-2016(Open-14331.20/High-14467.15/Low-14322.65)

Support:- 14344.20/14338.65/14331.20/14258/14120.90/13971.50/13810/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

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 moved in a short range today and closed with a small gain of 29.04 points. It has failed to cross its recent top of 14445 on the line chart in last five days which shows lack of strength in it .However some hope of moving up is still alive as long as it holds its recent bottom of 14119.85 on the line chart on the closing basis. Since it is not showing required strength and moreover, it is just a bear market rally therefore it is suggested to avoid long trade till is shows some visible strength but day trader can still try long call  if it sustains above 14330 with a stop loss of below 14250 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.

For 23-2-2016 long call can be tried now but not below 14345 with a stop loss of below 14250 for a target of 14445/14590/14670. 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 with proper stop losses or sell call can be tried if it maintains below 14250 with a stop loss of above 14345 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. It is not showing required strength but still long call can be tried as suggested above because it is  holding on to its recent bottom on the line chart and price movement is not that weak. 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.