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

CNX--BANK NIFTY

Closed at 15092.45 on 2-3-2016(Open-14770.35/High-15/Low-14767.30)

Support:-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:- 15130.35/15367.90/15565.50/15682.65/15762.20/16188.05/16192/16309.70/16587.25/16648.30/16670.55/16741/16824.05/16922.05/16932.50/17067.45.

It opened up with a huge up gap and maintained and then steadily moved up and ended the day near the high of the day with a colossal gain of 679.55 points. It continued yesterdays rising spree today also but it has to be seen whether it could sustain this rise or not in next 3-4 days. Furthermore  the gap it created today it still there and if it makes an attempt to fill this gap in next 2-3 days time then it could come down to 14445 level.  Although it has exhibited extra ordinary strength in last two days trade but it is still way below its long term moving averages not only on the daily chart but below some of it on the weekly chart also and other technical parameters are also not that great as of now, so it seem that the on-going rally is a powerful relief rally only. Therefore be alert and watchful in next 3-4 days, but since its short term technical setup looks o.k. long call can be tried above 15150 or on dip but not below 14754, similarly if it breaks and sustain below 14754 try short call also. Moving up it will face resistance at 15146—15200/15367.90/15565.50/15682.65/15762.20/.It is important to mention here that it will gain some strength if it moves and sustain above 15762.20. Going down it will find support at 14813/14754/14545/14467.15/14276/13943/132892/13810/13520/13407.

For 3-3-2016 long call can be tried if it moves and maintain above 15150 with a stop loss of below 15070 for a target of 15146—15200/15367.90/15565.50/or on the dip but not below 14754 with a stop loss of below 14680. Similarly short call can be tried if it moves below 14754 and sustain with a stop loss of above 14830 for a target of 14545/14467.15/14276. In view of more than 1140(closing basis) points rise in last two days long call should be handled cautiously.  

Remark:-It is in long term bear trend since 4-1-2016. In view of last two days phenomenal rise long call can be tried as suggested above but with extreme caution. Similarly short call can also be tried on above mentioned price breakdown. 

  

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.