CNX--BANK NIFTY- A TECHNICAL VIEW - 10-3-2016

CNX--BANK NIFTY

Closed at 15279.05 on 9-3-2016(Open-15022.35/High-15331.25/Low-14989.40)

Support:-15130.35/14858.50/14754.65/14709.10/14602.25/14467.15/14338.65/13892.10/13810.60/13519.90/ 13407.25/13414.30/13303.60/13150/12738.60/12514.75/12430.85.

Resistance:- 15367.90/15565.50/15682.65/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45.

It opened with a small down gap and went down further but thereafter staged a smart recovery and closed with a gain of 132.55 points. It has established higher bottom on the line chart today at 15146.50 which is good sign and indicate that the correction may be over. So the range for 10-3-2016 is between 15146.50—15339.20 on the closing basis. It is looking good on the technical chart therefore long call can be tried if it move and maintains above 15340 or else near 15146.50 but not below this for sure. Moving up it would face resistance at 15367.90/15451.75/15565.50/15682.65/15762.20. Please note that it will gain strong foothold if it moves and sustain above one of its most critical points of 15762.20 for the year 2016.

For 10-3-2016 long call can be tried if it moves and sustain above 15340 or near 15146 but not below this mark with a stop loss of below 15260 and below 15000 respectively for a target of15367.90/15451.75/15577/15682.65/15762.20. Although it is not showing any weakness now but if it moves and sustain below 15140, short call can also be tried with a stop loss of above 15290 for a target of 15000/14969/14761.

 

Remark:-It is in long term bear trend since 4-1-2016. But short term technical setup is showing strength so long call can be tried above 15340, similarly if it moves below 15140 and sustain short call can also be tried with above mentioned stop loss.

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.