CNX-BANK NIFTY--A TECHNICAL VIEW-3-2-2016

CNX--BANK NIFTY

Closed at 15068 on 2-2-2016(Open-15353.60/High-15463.45/Low-15018.85)

Support:-14973/14858.50/14754.65/14709.10/14338.65/13414.30.

Resistance:- 15130.35/15136.85/15300/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

As yesterday it witnessed complete breakdown today also and closed with a loss of 246.45 points and near the low of the day. In fact it has been making new lows for the last four days giving indication that it is lacking strength. Furthermore it has decisively broken all its short term moving averages, one of its important points of 15300 and making lower top and bottom on the line chart which clearly indicate that   the pullback rally has possibly ended. Therefore long call is completely ruled out and should not be attempted below 15550 as of now and sell on the rise strategy should be adopted till it shows some visible strength.

For 3-2-2016 can sell below 15136.85 for the entire remaining week with a stop loss of above 15180 or on the rise at appropriate points but not above 15540 with a stop loss of above 15580. The possible sell point could be at 15300/15384—15410/15465/15540. Please use self defined stop losses with the help of support and resistance level to exit unfavorable trade with a minimum loss.

Remark:-The long term trend is still down. In wake of yesterdays and today’s severe breakdown long call should be completely avoided till it moves and sustain above 15550 or show some visible strength at lower levels. Instead short call can be tried as suggested above.

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.