CNX--BANK NIFTY-A TECHNICAL VIEW 13-2-2017

CNX--BANK NIFTY

Open-20225.75--High-20310--Low-20167.10—Close-20213.90 on

 10-2-2017

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.

The broad observation remains the same (see my post of 10-2-2017).The overall technical setup is good but it is looking slightly on the back foot in comparison with nifty as far as strength is concerned. I once again reiterate that a close above 20371.60 is very important to somewhat confirm that the on-going up move may continue and then it has to hold the level of 20248 consistently on the closing basis to keep the hope alive of moving up, if it does so then it could attempt to either test of cross the previous all time high of 20907.55 or else it may top out here for the time being. It is important to note here that moving up it will face stiff resistance in the range of 20427----20556 on the closing basis and in the range of 20470---20610 on intraday basis while attempting to reach previous all time high.

The range for the week starting from 13-2-17 is between 20462.45---20000.35 with a critical support point at 20248 and breakout on the either side of the range will decide the direction of the market for the week. Since its close is in the middle of the range and it is below its critical point of 20248, therefore it is evenly poised for the day with slight weakness.

In view of the above it would be relatively safe for risk averse trader 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 20140 for a target of 20310/20371.60/20427/20470/.

Remark: - Technically it is still o.k. but since it has not yet closed above the critical top of 20371.60 and if it fails to do so in next 3-4 days time or make a lower top then it may top out here and down correction may begin. Therefore I would personally wait for a close above 20371.60 for initiating fresh long call. But aggressive trader can try long call as suggested above.

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.