CNX--BANK NIFTY-A TECHNICAL VIEW 10-2-2017

CNX--BANK NIFTY

Open-20312.55--High-20406.60--Low-20000.35—Close-20151.15 on

 9-2-2017

Support:  20000.35/19915.20/19816.50/19794.95/19518/19435.45/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance: -20248/20,309.70/ 20470/20541.65/20575.80/20907.55.

It is witnessing huge volatility and yesterday move gave an indication that a short bottom may have been in place at 20070.15(see my post for 9-2-17) but today it has turned the table and broke the said level intraday and closed with a loss of 94.25 points. So it has still not found bottom as yet and may slip down further from here before staging a comeback again. It is behaving in a very treacherous way therefore trading may not be easy now. So please note that moving down it will find support at 19980/19915.20/19827/19794.95/19680--40/19435.45 and it may possibly make bottom around any of these levels, but break and close below 19794.95 will indicate weakness in the on-going uptrend and break and sustained close below 19435.45 will confirm that up rally may be over for the time being and fresh down move may begin. Similarly moving up it will face very stiff resistance in the range of 20371.60----20575.80 and in between resistance at 20470 & 20542. It is important to mention here that it has to close above 20371.60(see my post for 9-2-17) once and then hold on to 20248 level to confirm that this rally carries on and it may attempt to test or cross it’s all time high of 20907.55.

It is important to mention here that since there is good volatility and wild swing in the market which is not good for steady up move, therefore it could be distribution at higher level also and if it is so then moderate to good fall is ahead.   Therefore it is suggested to structure your trade keeping the aforesaid range and points in mind or else wait till the market finds its normal rhythm before initiating any trade because volatility kills in both side trade. The overall bias is up as of now.

  

In view of the above observation it would be safe to try long call once it closes above 20371.60. However aggressive trader can try long call above 20248 with a stop loss of below 20180 for a target of 20310/20371.60/20427/20470/20575.80. Looking at the volatility, it could be a risky trade.

Remark: - Technically it is still o.k. but as it has yet to make a confirm bottom therefore it could slip down further from here, so avoid long call till it give some indication of correction completion. I would personally wait for a close above 20371.60 for initiating fresh long call or else will try long call on reasonable decline at appropriate points but not below 19500 with a stop loss of below 19435.

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.