CNX-BANK NIFTY--A TECHNICAL VIEW--29-2-2016

CNX--BANK NIFTY

Closed at 13791.45 on 26-2-2016(Open-13715.10/High-13889.25/Low-13595.20)

Support:-13519.90/ 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 after three days of severe fall it took a breather today and closed the day with a gain of 235.70 points. Please note that it could witness huge volatility and wild swings on 29-2-2016 because of The Union Budget-2016-17 but any rise has to be sold into at the appropriate points till it moves above 14470 and sustain.

Technically it is terribly weak on the chart but since it closed positive today ,so it may rise little further from here before it resume down move again. Going up it will face resistance at 13810/13892/13995-14030/14133/14190--14250/14350—14430 and today’s up move may end at any of these points. Similarly moving down it will find first support from its recent bottom of 13519.90 and then at 13414/13303.60/13150-13040/12738.60/12530. Please note that sustained break below 13303.60 can drag it down to unbelievable lower levels. Please note that it is already in the bear market and short term trend is also down, therefore it is suggested to avoid long trade for now and follow sell on the rise strategy till it moves above 14470 and sustain.

For 29-2-2016 sell call can be tried on the rise or below 13680 with a stop loss of above 13750 and if it moves and sustain below 13510 sell for sure with a stop loss of above 13600 for the entire week starting from 29-2-2016 for a target of 13414/13303/13150—13040/12900/12738. The possible sell points on the rise could be at 13810/13892/13995--14030/14133/14190--14250/14350—14430. 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.