CNX--BANK NIFTY-A TECHNICAL VIEW 20-2-2017

CNX--BANK NIFTY

Open-20918.45--High-21042.35--Low-20449.65—Close-20551.35 on

 17-2-2017

Support:20462.45/20449—20295/20309.65/20264/20088/ -- 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:-20555.25/20575.80/20907.55/21042.35.

It gave part weak signal on 15-2-17 by establishing a lower top at 20258.10 but did not break the bottom of 20151.15 on the line chart and technical indicators were also indicating weakness, but despite that it moved in a short range on 16-2-17 and on 17-2-17 surprisingly it opened with a whooping up gap at 20918.45 surpassing its previous all time high of 20907.55 and hit a new all time high of 21042.35 but it could not sustain at higher level and slipped down but finally closed with a gain of 307.65 points. On the line chart it just closed near its all time high close of 20555.25 and on the bar chart it hit a new all time high therefore the price movement is showing strength but some of the technical indicators still indicate weakness, the volatility it is witnessing is a concern for a steady up move and lastly the gap it created today is still there and if it attempts to fill the gap in next 3-4 days time which is technically possible then it could come down to 20295 level.

 In view of the above observation chances of it slipping down from here cannot be ruled out. It is therefore suggested to be extremely vigilant and careful in your trade positions. Long call can be tried if it moves and sustain above 20576 with a stop loss of below 20445 for a target of 20770/20908.

Remark: - Price-wise it is showing good strength but certain technical indicators indicate otherwise. Therefore long call can be tried as suggested above but with extreme caution but after watching the market for some time.

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.