CNX--BANK NIFTY-A TECHNICAL VIEW 20-1-2017

CNX--BANK NIFTY

Closed at 19124.25 on 19-1-2017(Open-19165.35/High-19185.30/Low-19046.10)

Support:-19096.70/19059/18966.30/18824.40/17739.65/18713.60/18551/18537/18532/18443.65/ 18325.50/18316.25/18242.10/18177.20/18143.70/17952.60.

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

It is showing good strength and moving up in a rhythm making higher top and bottom on the line chart  and higher highs and higher lows on the bar chart but today it has made lower high and lower low on the bar chart and closed with a small loss of 40.25 points. So if it consistently trade below 19046 on 20-1-2017 then it  could correct further and moving down it will find very good support from its long term moving average which is placed at 18896.14(it changes every day) for 20-1-2017 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 again, but please note that it will keep the up momentum in place only if it sustains above its long term moving average i.e. above 18896.14 similarly   if it breaks it and sustain below it for few days  then it may break the other support point of 18781.25 & 18739.65 also and fall may accelerate further.  It is therefore suggested that as of now long call can only be tried if it moves and sustain above 19165 for some time with a stop loss of below 19059 or on dip but not below 18896. 

TRADING STRATEGY

1. Long call can be tried if it sustains above 19165 with a short stop loss of below 19059. The upside target could be 19203/19278/19494/19516/19595.

2. Aggressive trader can try long call on decline near 18896 and then near 18781 with a stop loss of below 18700.

3. Contrarian short call can be tried if it sustains below 19090 for some time with a stop loss of above 19165 for a target of 19046/18966/18912/18880/18824/18740/18630.It could be a risky trade.

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 19165 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.