Wednesday, 8 February 2017

CNX--BANK NIFTY-A TECHNICAL VIEW 9-2-2017

CNX--BANK NIFTY

Open-20335.25--High-20362.80--Low-20070.15—Close-20245.40 on
 8-2-2017

Support:  20229.65/20196/20070/19915.20/19816.50/19794.95/19518/19435/19276.50/19096/19059/18961/18824.50/18722.85/18551/18537/18515---18441/18443.65.

Resistance: -20248/20,309.70/ 20470/20541.65/20575.80/20907.55.

As expected yesterday’s correction extended today and it hit a low of 20070.15 for the day but in last hour of trade it recovered intraday losses sharply to close with a relatively small loss of 81.84 points. Although it closed negative but today’s movement gives an indication that a short bottom may be in place at 20070.15 and the correction may have ended so now it may resume the up move again. But I once again reiterate that close above 20371.60 will only confirm that the up momentum (see my post of 8-2-17) will be carried on and it may attempt to hit a new all time high.

In view of the above observation it would be safe to try long call once it closes above 20371.60; however aggressive trader can try long call above 20310 with a stop loss of below 20180 for a target of 20371.60/20427/20465/20575.80.

Remark: - Technically it is o.k. and with today’s movement it seems that a short bottom is made and correction may be over, therefore long call can be attempted above 20310. But I would personally wait for a close above 20371.60 for initiating fresh long call.

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.