CNX--BANK NIFTY- A TECHNICAL VIEW - 15-3-2016

CNX--BANK NIFTY

Closed at 15277.80 on 14-3-2016(Open-15309.05/High-15416.15/Low-15220.15)

Support:-15130.35/14989/14858.50/14754.65/14709.10/14602.25/14467.15/14338.65/13892.10/13810.60/13519.90/ 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 very strong and positive note and moved up further but could not hold on at higher level and slipped down but at the end of the day closed with a gain of 109.60 points. It did give upside breakout from the weekly range of 15354.15—14989.40 and went near the upper band of 15451 of the flag pattern (see my post for 14-3-16) but could not sustain and fallen back within the weekly range  and closed just 57 points above the low of the day this move  shows some sign of exhaustion. But since it is making higher bottom on the line chart it could still move up as long as it holds 15140 levels on the closing basis. Please note that sustained close below 15140 may indicate the end of this on-going up move. In view of the above long call be tried if it moves and sustain above 15355 but long call should be avoided for sure below 15140. Moving up it will face resistance at 15367/15451.75/15565.50/15682.65/15764.20. Similarly going down it will find support at 15140/14989.40/14969/14761/14754/14670.

For 15-3-2016 long call can be tried if it moves and sustain above 15355 with a stop loss of below 15168 for a target of 15367.90/15451.75/15577/15682.65/15762.20. 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 if it sustains 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.