Saturday, 4 February 2017

CNX--BANK NIFTY-A TECHNICAL VIEW 6-2-2017

CNX--BANK NIFTY

Open-20061.90--High-20229.65--Low-20009.95—Close-20196.80 on
 3-2-2017

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/ 20248/20264.80/20309.65/20541.65/20575.80/20907.55.

It steadily moved up and closed today within its very important range of 20168.35---20248 (see my post of 3-2-2017). It is exhibiting tremendous strength but it has to move above 20248 and sustain on the closing basis consistently to make an attempt to hit a new all time high, but attempting new high may not be smooth because it will face stiff resistance on the way up at 20310/20440 & 20575.80 levels. So 20248 is a very critical point and if it fails to move above it on the closing basis and sustain then it could correct before moving up further. Moving down the most important levels would be at 19794.95 & 19435.45, please note that break and close below 19794.95 will be an indication of break in the on-going uptrend and break and close below 19435.45 will confirm the end of the current up rally and then it may slip into deep corrective mode. So at present the important trading range is 20248----19794.95 and either side breakout will decide which way it can move, but looking at the present momentum chance are that it could give upside break. However plan your trade keeping the said range and resistances thereafter in mind for the effective outcome of your trade.  The bias is on the upside as of now, but it is critically poised, so be vigilant and cautious in your trade.

It is important to mention here that for 6-2-2017 moving up the range of 20230---20315 may pose stiff resistance and if it does not move above this range then it could retreat from here, so be cautious in your trade positions around this range.

In view of the above observation, it is suggested to try long trade either above 20248 with a stop loss of below 20180 for a target of 20297/20315/20440/20576 or on decline near but not below 19794.95 with a stop loss of below 19670. It would be better and safe to try long call above 20248 on 6-2-2017.

Remark: - Technically it is on a strong footing and no doubt it is buy on dip market, but at this juncture it is precariously poised but an upward bias. Therefore long call can only be tried above 20248. Avoid buy on decline on 6-2-2017. 

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 pointsDO NOT TRADE WITHOUT STOP LOSS.
                                                                                     
Contact me for strategic guidance to enter and exit the trade.





No comments:

Post a Comment

Thank you for sharing your views.