CNX-BANK NIFTY--A TECHNICAL VIEW--24-2-2016

CNX--BANK NIFTY

Closed at 14008.35 on 23-2-2016(Open-14373.30/High-14373.30/Low-13961.75)

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

Resistance:- 14120.90/14258/14331.20/14338.65/14344.20/14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It lacked strength throughout this up move(see my post for 23-2-2016) and today it opened flat to negative and thereafter plunged down and closed the day with a whopping loss of 376.45 points and near the low of the day. Furthermore it made lower top and broken its recent bottom of 14119.85 thereby making lower bottom on the line chart which indicates that the on-going rally may be over for good and fresh down slide may begin, therefore long call should be completely avoided till it crosses 14470 and sustain or shows some visible strength at the lower levels. It is therefore suggested to adopt sell on the rise strategy till it moves above 14470 and sustain. Moving down it will find good support at 13892/13810/13760/13690/13520/13414/13303.60 where it could take a breather. Please note that sustained break below 13303.60 can drag it down to much lower levels.

For 24-2-2016 sell call can be tried on the rise or below 13960 with a stop loss of above 14030 for a target of 13892/13810/13760/13690/13520. The possible sell points on the rise could be at 14250—14325/14450. The authentic stop loss for short trade on the rise would be above 14510; therefore it is suggested to use self defined stop losses for every sell point with the help of resistance level mentioned above to manage your trade better. Buying is ruled out for now.

 Remark:-It is in long term bear trend since 4-1-2016. The on-going pullback rally seems to be over therefore long call should be completely avoided now and sell on the rise strategy should be followed. 

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.