CNX--BANK NIFTY-A TECHNICAL VIEW 16-2-2017

CNX--BANK NIFTY

Open-20282.10--High-20368.20--Low-20115.85—Close-20163.70 on

 15-2-2017

Support:20115/ -- 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 failed to close above 20371.60 instead it has established a lower top at 20258.10 on the line chart but yet to break the recent bottom of 20151.15; therefore it seems that the ongoing up move may have halted (see my earlier post) but deep down correction may only begin once it breaks its recent bottom of 20151.15 on the line chart, chances of which looks very bright. Furthermore it broke some of its short term moving averages and certain technical indicators have also turned weak pointing towards further fall from here, therefore long trade should be ruled out till it closes above its recent top of 20258.10 on the line chart but it would pick up momentum once it closes above 20371.60 which may please be noted or long call can be tried after a reasonable decline near or within the range of 19795—19435 but not below 19435. It is therefore suggested to try short call now on the rise but not above 20371.60 with a stop loss of above 20430 or below 20150 with a stop loss of above 20260 for a target of 20115/20000/19915/19823/.  

Remark: - It has made lower top and certain technical indicators also pointing that further fall ahead ,therefore long call should be completely avoided at least till it closes above 20258.10. Instead short call seems a better option at this point of time and can be tried 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.