CNX--BANK NIFTY- A TECHNICAL VIEW FOR-- 4-3-2016

CNX--BANK NIFTY

Closed at 15150.05 on 3-3-2016(Open-15150.05/High-15206.05/Low-15000.05)

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 short up gap today but filled the gap during the day, but please note that the gap it created  yesterday is  still intact and if makes an attempt to fill this gap in next 2-3 days time, it could come down to 14445 level. No doubt it exhibited good strength in last three days but the concerning part is that it had a vertical rise and its recent bottom on the bar and line chart are far below at 13407.25 and 13555.70 respectively, please note that it cannot keep on moving vertically, it has to come down to make higher bottom,   therefore it looks highly vulnerable for a down correction now and it may happen in 2-3 days time. So be extra cautious and careful in long call now. In fact it would be better to avoid fresh long call today and book profit in the existing long position and wait for it to correct to re-enter at an appropriate level. However since the short term technical setup is o.k. those who wish to try long call can try if it moves and maintain above 15210 or on the dip but not below 14754. Moving up it will face resistance at 15275/15367.90/15565.50/15682.65/15762.20/.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 14813/14754/14545/14467.15/14276/13943/13892/13810/13520/13407.

For 4-3-2016 for safe trader it is suggested to avoid fresh long call now and advised to book at least part profit in existing long position if not completely .However aggressive trade can try long call if it maintains above 15210 with a stop loss of below 15140 for a target of 15275/15367.90/15565.50/or on the dip but not below 14754 with a stop loss of below 14680. Similarly short call can be tried if it moves and maintain below 15140 with a stop loss of above 15220 for a target of 14813/14754/14545/14467.15/14276. In view of more than 1230(closing basis) points rise in last three days long call should be handled cautiously.  

Remark:-It is in long term bear trend since 4-1-2016. It is suggested to avoid fresh long call today and book profit on existing long trades if not completely at least part profit booking for sure. Sell call can be attempted 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.