CNX--BANK NIFTY-A TECHNICAL VIEW 17-1-2017

CNX--BANK NIFTY

Closed at 19096.45on 16-1-2017(Open-18899.70/High-19134.50/Low-18865.25)

Support:-19059/18966.30/18824.40/17739.65/18713.60/18551/18537/18532/18443.65/ 18325.50/18316.25/18242.10/18177.20/18143.70/17952.60.

Resistance:- 19096.70/19125/19158/19278/19493.50/19672.

The broad observations remains the same (refer my post of 16-1-2017). The technical setup is ok but the unabated vertical rise is concerning as it has climbed up for the eighth straight day. Please note that it is showing good strength and refuses to budge down, it may rise for next few days also but after 8 days of rise it enters into the highly vulnerable zone technically and down correction could step in any moment, therefore one should extremely vigilant and cautious in the long trade at this point of time.

Furthermore moving up the range of 19060—19200--19280 and then from 19516-19593—19645--19745 will pose a very stiff resistance to it, so be watchful in you trade around these range.

TRADING STRATEGY

1. Long call can be tried now above 19100 with a short stop loss of below 18960 but the authentic stop loss would be below 18870. The upside target could be 19135/19158/19278/19494/19516/19595.

2. Aggressive trader can try long call on decline at appropriate points but not below 18870 with a stop loss of below 18735.

3. Contrarian short call can be tried, near but not above 19230 with a stop loss of above 19290 for a target of 19134/19096/18966/18912/18870/18824/18740/18630.It could be a risky trade but worth trying.

Remark: - As of now it is a buy on dip market, It enters into highly vulnerable zone for a corrective move but showing no sign of weakness ,therefore long call can still be tried as suggested above but should be handled with extreme care. I would personally prefer to avoid long call now instead look for an opportunity to try short call for taking advantage of a possible down correction although it is not a shorting market 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.