CNX-BANK NIFTY--A TECHNICAL VIEW-5-2-2016

CNX--BANK NIFTY

Closed at 14899.65 on 4-2-2016(Open-14969.20/High-14978.35/Low-14761.40)

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

Resistance:- 14973/15130.35/15136.85/15300/15626.90/15682.65/15725.80/15742.05/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45/

After three days of huge fall it took a short breather today and closed with a gain of 65.60 points. Even now it is well below its short term moving averages and the range for which is between 15186---15489(it changes every day) for 5-2-2016 but is has multiple support in the range of 14777---14754. It is still sell on the rise market but in view of the above fresh sell call should either be initiated on the rise using the aforesaid moving average range as sell point range or if it breaks the recent bottom of 14834 on the line chart and then the bottom of 14754 on the bar chart. Please note that fresh long trade should only be attempted once it closes above its short term moving average range.

 For 5-2-2016 can sell on the rise using the range of 15186---15489 as selling point range but not above 15540 with an ultimate stop loss of above 15580 or can sell below 14834 with a stop loss of above 14925. Sell for sure below 14754 for the entire month of February-2016 with a stop loss of above 14850.

Remark:-The long term trend is still down. After three severe down days it had a short up day today but it is still clearly a sell on the rise market now; therefore buying should not be attempted for in between short up moves now. Long trade should only be tried above 15550 only.

 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.