CNX--BANK NIFTY-A TECHNICAL VIEW 18-1-2017

CNX--BANK NIFTY

Closed at 19067.05 on 17-1-2017(Open-19128.15/High-19202.25/Low-18981.85)

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:- 19096.70/19125/19158/19203/19278/19493.50/19672.

At last it gave a small down correction today but overall it is exhibiting good strength technically. But if it consistently starts trading below 19059 it could correct further and moving down it will find very good support from its long term moving average which is placed at 18880.62(it changes every day) for 18-1-2017 and then at 18781.25(recent bottom on the bar chart) and 18739.65(breakout top on the bar chart) and it may bounce back from any of these points and may resume the uptrend, but if it breaks 18880.62(long term moving average) and sustain below it for few days then the fall may accelerate. It is therefore suggested that as of now long call can only be tried if it moves and sustain above 19100 with a short stop loss of below 19059.  

TRADING STRATEGY

1. Long call can be tried above 19100 with a short stop loss of below 19059 but the authentic stop loss would be below 18880. The upside target could be 19135/19158/1920319278/19494/19516/19595.

2. Aggressive trader can try long call on decline at appropriate points but not below 18781 with a stop loss of below 18700.

3. Contrarian short call can be tried below 18965 with a stop loss of above 19070 for a target of 18912/18880/18824/18740/18630.It could be a risky trade but worth trying.

Remark: - As of now it is a buy on dip market, It gave small down correction today and it may correct further from here therefore long call  should only be tried if it moves and sustain above 19100 or else after a reasonable decline.

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.