CNX-BANK NIFTY--A TECHNICAL VIEW--8-2-2016

CNX--BANK NIFTY

Closed at 15162.05 on 5-2-2016(Open-14928.25/High-15211.90/Low-14890.90)

Support:-15162.05/15136.85/15130.35/14858.50/14754.65/14709.10/14338.65/13414.30.

Resistance:- 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 builds on yesterday’s short up move and gave good rise today and closed with a gain of 292.89 points. Despite today’s rise the technical setup is still not that encouraging and it is just above its short term moving average range lower band, the range for 8-2-16 is between 15160--15456(it changes every day). But it has recent multiple bottom support in the range of 14777—14754. So the broad range of support and resistance for it now is between 14754---15160---15456---15550. In view of the above long call should only be tried if it moves above the short term moving average upper band i.e.15456 and sustain, but it would be safe to try long call if it sustain above 15550. Therefore it seems that short call is still a good option till it moves above 15550 and sustain.

For 8-2-2016 can sell below 15160 or on the rise using the moving average range of 15160---15456 as selling point range  and then near but not  above 15520 with a  stop loss of above 15570.

Remark:-It is in long term bear trend. It had a good rise today but it is suggested to try long call only if it moves and sustain above 15550.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.