CNX--BANK NIFTY- A TECHNICAL VIEW - 14-3-2016

CNX--BANK NIFTY

Closed at 15168.20 on 11-3-2016(Open-15133.75/High-15343.55/Low-15024.80)

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 on a negative note and gave both ways movement during the day and ended the day with a meager loss of 12.45 points. After giving 2000 points rise in last few days, now it seems that it is consolidating here and making a flag pattern and the range of which is between 15451.75---14989.40 and the range for the week starting from 14-3-2016 is between 15354.15—14989.40. Please note that breakout from the flag pattern will give substantial movement on either side. Please also note that it is still looking good on the daily chart but weekly and monthly charts are still weak. Furthermore it has given some weak indication on the line chart as because after making higher top of 15339.20 it has made a lower top of 15279.05 now but the only bright spot is that it has not violated its bottom of 15146.50 on the closing basis yet, sustained close below this level may indicate the end this on-going up move. In view of the above observation it looks slightly fatigued but technically it is still o.k. So long call can be tried if it moves and sustain above 15280 but it would be safe to try long call if it moves and sustain above 15355. Avoid long call for sure if it maintains below 15146.

For 14-3-2016 long call can be tried if it moves and sustain above 15355 with a stop loss of below 15250 for a target of 15367.90/15451.75/15577/15682.65/15762.20. But aggressive trader can try long call if it maintains above 15280 with a stop loss of below 15146.It could be slightly risky trade.  In view of lower top on the line chart short call can also be tried if it maintains below 15140 for some time with a stop loss of above 15200 for a target of 15000/14989/14969/14761.

Remark:-It is in long term bear trend since 4-1-2016. The fresh long call should only be attempted above 15355 and short call can also 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.