CNX-BANK NIFTY--A TECHNICAL VIEW--25-2-2016

CNX--BANK NIFTY

Closed at 13794.05 on 24-2-2016(Open-13873.70/High-13974.50/Low-13760.25)

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

Resistance:- 13810.60/13892.10/14120.90/14258/14331.20/14338.65/14344.20/14445/14602.25/14709.10/14754.65/14858.50/15130.35/15136.85/15162.05/15206.30/15300/15522.40/15547.75/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

It opened with a down gap but filled the gap during the day and thereafter steadily moved down and ended the day with a loss of 214.30 points and closed near the low of the day. It is showing gross weakness on the chart and it is clearly sell on the rise market now (see my post of 24-2-2016). Therefore buying should be completely avoided till it crosses 14470 level and sustain or shows some visible strength at the lower levels. Moving down it will find good support at 13760/13690/13520/13414/13303.60 where it could take a breather and may give a short relief rally before resuming down move again. Please note that sustained break below 13303.60 can drag it down to much lower levels.

It is important to mention here that Rail & Union Budget is approaching, so the market could witness huge volatility and wild swings but since the fresh down move seems to have begun and it is already in the bear market, therefore any up swing should be utilized for selling. 

For 25-2-2016 sell call can be tried on the rise or below 13760 with a stop loss of above 13820 for a target of 13670/1352013414/13303. If it remains below 13892 can sell with a stop loss of above 13950 for the remaining week. The possible sell points on the rise could be at 14050/14125-150/14240—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. Since 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.