CNX- BANK NIFTY-A TECHNICAL VIEW--26-2-2016

CNX--BANK NIFTY

Closed at 13555.70 on 25-2-2016(Open-13844.45/High-13844.45/Low-13519.20)

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 on a positive note and the open was the high also for the day thereafter it steadily moved down and broke and closed below the yesterdays low with a huge loss of 238.35 points. It is terribly weak technically, furthermore it is already in the long term bear market and finally it has ended its recent short up move two days back and started declining, so it seems that the fresh down move has begun, therefore long trade is completely ruled out till it crosses 14470 levels and sustains or shows some visible strength at the lower levels. It is clearly sell on the rise market now, however in between short relief rally cannot be ruled out but those rallies should be utilized for selling. Moving down it will find good support at 13520/13414/13303.60/13150-13040/12738.60/12530 where it could take a breather. Please note that sustained break below 13303.60 can drag it down to unbelievable lower levels, so be alert and watchful.

For 26-2-2016 sell call can be tried on the rise or below 13519 with a stop loss of above 13600 for a target of 13414/13303/13150—13040/. The possible sell points on the rise could be at 13810—13892/14050/14120/14260—14325/14450. 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. It is suggested to adopt sell on the rise strategy and long trade should be completely avoided for now. 

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.