CNX--BANK NIFTY-A TECHNICAL VIEW 7-2-2017

CNX--BANK NIFTY

Open-20307.15--High-20462.45--Low-20298.05—Close-20371.60 on

 6-2-2017

Support:  20309.65/20248/19915.20/19816.50/19794.95/19518/19435/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance: - 20470/20541.65/20575.80/20907.55.

It is exhibiting huge strength technically. It opened with an up gap and thereafter moved up further and made a high of 20462.45 for the day and finally closed at 20371.60 with a gain of 174.79 points.

Please note that it gave huge upside breakout from the weekly range of 20248----19794.95(see my post of 6-2-17) and also from one of its important top of 20309.65, therefore as long as it holds the level of 20309.65 & 20248 there is no potential threat of deep correction, short correction may happen anytime. But technically there is always a possibility that it could attempt to fill the today’s gap in next 3-4 days and if it does then it could come down to 20230 level and in that case long trade can only be tried if it moves again above 20309.65 and sustain.

Looking at its up momentum at least now it seem that it is heading for hitting a new all time high in coming days/weeks but on the way it will face stiff resistance at 20405/20470/20541.45/20575.80. It is therefore suggested to be extremely cautious in your trade position henceforth, because possibility of a down correction is always there and it could creep in at any point of time.   

In view of the above observation on 7-2-2017 long call can only be tried above 20405 with a stop loss of below 20290 for a target of 20470/20541.45/20575.80. Avoid long call on decline on 7-2-2017. 

Remark: - Technically it is on a strong footing, but at this juncture caution should be exercised because it may also correct anytime. Therefore it would be safe to try long call above 20405 on 7-2-2017. 

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 points. DO NOT TRADE WITHOUT STOP LOSS.

                                                                                     

Contact me for strategic guidance to enter and exit the trade.