CNX--BANK NIFTY-A TECHNICAL VIEW 9-1-2017

CNX--BANK NIFTY

Closed at 18264 on 6-1-2017(Open-18168.45/High-18325.50/Low-18157.80)

Support:-18242.10/18177.20/18143.70/17952.60/17910.80/17829/17606.

90/17425.80/17350.45/16946.05/16431.65/16368/16186/15762.

Resistance:- 18325.50/18443.65/18532/18537/18551/18713.60/17739.65/18824.40/18961.15/19059/19096.70/19125/19158/19493.50.

It had an erratic movement during the week but finally ended the week with a small gain of 86.80 points over the previous week.  Its rise has not been that smooth as compare to Nifty but any way it still seems to be a buy on dip market as of now. In this context it is important to mention here that 18177.20 & 18242.30 are its most critical and important benchmark points for the year 2017, therefore be circumspect in long trade if it consistently starts trading below these points because sustained break below it may lead to a fresh down move, similarly be alert in short trade above these points. Please note that since it has crossed and closed above its benchmark points today only, therefore it has to be seen whether it sustains above it or not in next 3-4 days and if it does  then this rally may continue. Furthermore it is also above its lower band of long term moving averages range which is between 18082—18847(it changes every day) therefore even if it breaks its benchmark point of 18242.30 & 18177.20 but as long as it holds its lower band of long term moving average chances are that it may bounce back from there and may the cross the benchmark points also and this rally may continue. But it is suggested to avoid long trade below 18242.30 and below 18177.20 for sure till it bounces back above 18242.30 again and sustain.

                                                   TRADING STRATEGY

1. Long call can be tried if it sustain above 18264 for some time with a stop loss of below 18230 and can add on position if it moves and sustain above 18326 with a stop loss of below 18290. The upside target could be 18370/18444/18473/18513.

2. Aggressive trader can try long call on decline also but not below 18177 with a stop loss of below 18130 or near but not below 18082 with a stop loss of below 18000, it could be a risky trade but with even chances.

Remark: - As of now it is a buy on dip market but since it closed above its benchmark point of 18177.20 & 18242.30 today only but not comfortably above it and may slip below these points also, therefore it is advised to exercise some caution in long trade and it is suggested to try long trade above 18264. Avoid long call below 18242.30 and below 18177.20 for sure. 

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.