CNX--BANK NIFTY-A TECHNICAL VIEW 26-12-2016

CNX--BANK NIFTY

Closed at 17884 on 23-12-2016(Open-17849.25/High-17962.30/Low-17819.75)

Support:-17819.75/17425.25/17350.45/16946.35/16932.50/1692/16431.65/16368/16186/15762.

Resistance:- 17952.60/18051.50/18143.70/18316.80/18443.65/18532/18713/18740

 It is in downtrend and the overall technical setup is very weak, apart from making lower lows; it is also running below its all short and long term moving averages and the last long term moving average is placed at 17944(it changes every day and it is increasing now by 18-20 points every day, so derive the fresh count every morning by adding the said points to previous level for trade convenience) for 26-12-16. The down move is on therefore sell on the rise strategy should be adopted, but it can also have an up day in between  and since it is below its last long term moving average therefore long call can only be tried on 26-12-16 if it sustain above 17944 for some time with a stop loss of below 17870 or else try long call after a reasonable decline, but be aware that in down trend short up move or relief rally are treacherous in nature and can end abruptly therefore it can trap you. So short call seems a safer bet near but below 17944 with a stop loss of above 17970 or sell for sure if it breaks below 17819 and sustain then one can sell for the entire week starting from 26-12-2016 with a stop loss of above 17870.  Moving down it has good support in the range of 17869—17802 and then at 17672/17402/17222/17064, but if it gives a sustain break below 17672 then it is likely to break 17000 mark. Furthermore certain technical indicators are also pointing towards it that it may seek much lower levels from here and may break not only 17000 mark but breaking 16000 level is also likely in coming days/weeks and months as of now. It is therefore suggested that long call should be handled with extreme caution and care.

Remark: - The uptrend is severely threatened and it is already in downtrend. Long call should be avoided for sure below 17944; short call seems better idea below it with suggested stop loss. The trend is bearish as of now.  

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.

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.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.