Wednesday, 8 February 2017

CNX--BANK NIFTY-A TECHNICAL VIEW 8-2-2017

CNX--BANK NIFTY

Open-20367.30--High-20426.95--Low-20281.50—Close-20327.25 on
 7-2-2017

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 corrected today but the overall technical setup is o.k. But it has not filled the gap it created on 6-2-2017, furthermore it made lower high and lower low today which is slightly concerning and if moves below 20280 and sustain then it may correct further before moving up again. Please note that it may regain the up momentum once it closes above 20371.60 and if it fails to close above it then it may slip into deep correction. In view of today’s movement chances of correcting further looks quite possible and in that case it will find good support at 20229.65/19922.70/19794.95/19435.45. It is therefore suggested to avoid long call till it closes above 20371.60; however aggressive trader can try long call above 20356 with a stop loss of below 20280 or else try on decline near but not below the support points mentioned above with a self defined short stop losses because it is difficult to know that how correction will culminate.

Remark: - Technically it is o.k. but looking at today’s movement it seems that it could correct further from here before moving up again, therefore long call should only be tried once it closes above 20371.60. 


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.




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Thank you for sharing your views.