CNX--BANK NIFTY-A TECHNICAL VIEW 30-1-2017

CNX--BANK NIFTY

Closed at 19708.30 on 27-1-2017(Open-19588.40/High-19794.95/Low-19534.90)

Support:-19518/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance:-19794.95/19816.50/19922.70/20283/20309.65/20541.65/20575.80/20907.55.

It is exhibiting superb strength and in last four days it has moved up by more than 1050 points on intraday basis and 850 points on the closing basis which is phenomenal. But the concerning thing is that is has opened with an up gap for two consecutive days and the gap still exist moreover the gaps are not good for sustained rise and if it makes an attempt to fill the gap in next 2-3 days then it could come down sharply to 19518 and then at 19054 and secondly it has retraced the fall from its recent major top of 20575.60 and bottom of 17606.90 and its all time high top of 20907.55 and recent major bottom of 17606.90 by more than 61.80%, furthermore it is slightly overbought too, therefore it is vulnerable for correction or may be for complete exhaustion at this juncture. Although overall technical parameters are indicating tremendous strength for further up move ahead. So if this on-going up move has to continue and Bank Nifty to hit a new all time high then it has to hold the range of 19700--19450 on the down side similarly moving up it has to cross the major hurdles on the way at 19876/19983/20130/20248 and that too in a reasonable time and sustain above 20248 level, else this on-going up move may get into corrective mode or exhaust completely at any of these points which may please be noted.   

In view of the above observation long trade can be tried above 19710 with a stop loss of below 19640 or above 19795 with a stop loss of below 19700 avoid buy on decline today. It would be safe to buy above 19795 in the entire coming week starting from 30-1-2017. Avoid long trade below 19640 in any case for now.

Remark: -It is exhibiting robust strength but in view of the overall observation it seems that it is evenly poised with an upward bias as of now. Therefore long call can only be tried above 19795 and avoid buy on decline today.

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.