CNX--BANK NIFTY-A TECHNICAL VIEW 3-2-2017

CNX--BANK NIFTY

Closed at 20070.30 on 2-2-2017(Open-20053.95/High-20145.90/Low-19915.20)

Support:- 19922.70/19816.50/19794.95/19518/19435/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance:-20168.35/ 20248/20283/20309.65/20541.65/20575.80/20907.55.

It moved up in a robust way after the presentation of the Union Budget-2017-18 on 1-2-17 and closed with a huge gain and today also it consolidated and closed with a meager gain of 49.70 points. It is showing tremendous strength and is still buy on dip market but extreme alertness is required at this juncture as the range of 20168.35---20248 is very important and crucial to keep the up momentum going.

Please note that it has to move above 20248 and sustain on the closing basis to keep the on-going up momentum intact, if it does so then it may hit a new all time high also but attempting that it will face hurdles at 20440 & 20575.80 points too. So the up journey may not be smooth from here and if it fails to move above 20248 in next 3-4 trading session then this on-going rally may exhaust also and it may go into corrective mode, so be watchful and alert and plan your trade keeping the above range and stiff resistance thereafter in mind.  

Similarly moving down the range of 19794.95---19435.45 is very important. Please note that sustained close below 19794.95 can put it in a corrective mode and break below 19670 & 19435.45 may accelerate the fall.

In view of the above observation long can be tried either on decline near 19794.95 or above 20248 but not now with a stop loss of below 19700 & 20100 respectively. It is not the market for short call now but since  it is just below is critical range of 20168.35—20248 therefore if it fails to cross the said range short call can be attempted near or within the range with a stop loss of above 20320 for taking advantage of corrective move.

Remark: - Technically it is on a good footing and no doubt it is buy on dip market, but at this juncture it is precariously poised with a slight upward bias. Therefore long call can only be tried either near 19794.95 or above 20248 but not below 19794.95 for sure. It would be safe to try long call above 20248 at this point of time. Short call can also be attempted as suggested above. It could be  worth trying.

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.