CNX-BANK NIFTY-A TECHNICAL VIEW-9-2-2016

CNX--BANK NIFTY

Closed at 15046.80 on 8-2-2016(Open-15206.30/High-15367.90/Low-14960.10)

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

Resistance:- 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/

An important annual event of Budget-2016-17 is ahead therefore lot of action and volatility is expected in the market, so one should be cautious in trade till the event is over.

It opened firmly and went up further but in last hour of trade it nosedived and hit a low of 14960.10 from the days high of 15367.90, intra- day it fell by more than 400 points but closed the day with a loss of 115.25 points. It is in long term bear trend but the short term technical setup looks mixed now. The positive point after today’s move is that it is still holding its multiple bottom range of 14777—14754 on the bar chart and recent bottom of 14834.05 on the line chart and still holding its short term rising trend line ,so if it holds the aforesaid bottom range it could still rally. The negative point it that it has decisively broken its short term moving average range which is between 15120—15417(it changes every day) for 9-2-2016.

For 9-2-2016 In view of the above fresh short call can safely be tried if it breaks the bottom of 14834.05 and then below 14754 for sure with a stop loss of above 14850 or on the rise but not above 15162.05 with a stop loss of above 15220 similarly aggressive trader can try long call also provided it move above its recent top of 15162.05 on the line chart and sustain for some time with a stop loss of below 15090. It is suggested that it would be better to try long call if it closes above its short term moving average range or if it moves and sustains above 15550.

Remark:-It is in long term bear trend. Although it had huge volatile movement today but it is still holding on to its recent bottom on the bar and the line chart. Take your trading call as suggested above but one should be circumspect in their trade position.

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.