A TECHNICAL VIEW ON CNX--BANK NIFTY---1-8-2017

CNX--BANK NIFTY

Open-24880.60--High-25168.10--Low-24828.50—Close-25103.65 on 31-7-2017

MajorSupport:-24672/24651.05/24551.78/24455/24254.55/24053.70/23897.85/23774/23708/23684/23610/23477/23403.

Major Resistance:-25268.80/25356/25517/25543.

For-1-8-17 the intra-day support and resistance levels are given here-under:-

Support:-24672/24651.05/24551.78/24455/24299.60/24250/24234/24146/24053.

Resistance:-25168.10/25268.80/25356/25395/25517/25543.

It has given decisive upside breakout from its critical range of 25033---24551, therefore as long as it holds 25033 further rise is expected from this level but it will only accelerate if it moves and sustain above 25170 which may please be noted. Moving up it may face resistance at 25269/25356/25395/25517. Similarly moving down it will find support at 25033/24956/24887/24651.05. The technical setup is o.k. and bias is on the upside as of now, therefore long trade can be tried.

It is important to mention here that in wake of Reserve Bank of India credit policy announcement on 2^nd August-2017 there may be huge build up of long position in it because of high hopes for a substantial rate cut. So whatever be the outcome of the policy profit booking will definitely emerge may be immediately after announcement or a day or two later. Therefore it is suggested to be highly cautious in your long trade commitments in view of the ensuing event.   

          TRADING STRATAGY FOR-1.8.2017

1. Long call can be tried if it sustain above 25103.65 for some time with a stop loss of below 24950 for a target of 25170/25269/25356/25395.

2. It would be relatively safe to try long call if it moves and sustain above 25170 for some time with a stop loss of below 25080 for a target of 25269/25356.

3. Buy on decline strategy can also be tried near but not below 25033 with a stop loss of below 24950.

Remark: - The trend is up. Therefore long call can be tried as suggested above. But it would be better to try it above 25170 or on decline.

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.