A TECHNICAL VIEW ON CNX--BANK NIFTY--24-7-2017

CNX--BANK NIFTY

Open-24231.40--High-24289.30--Low-24066.90—Close-24257.05 on 21-7-2017

Major Support::-23897.85/23717/23708/23684/23610..

Major Resistance:-24455/24672.

Broad Range: - 23897.85----24455

Range for the week starting from 24-7-17:--24299.30---23913.65.

For-24-7-17 the support and resistance levels are given here-under:-

Support:-24195/24053/23985/23930.

Resistance:-24300/24378/24455.

It is showing good strength technically therefore further rise in it is expected, but since it has been moving up unabated for the last 8 days, furthermore after making bottom of 22996.40 on 30.6.2017 it has been vertically moving up and lastly it is also near the upper end of its weekly range of 24299.30 and the broad range of 24455 therefore there is a strong possibility that it may correct from here before it continues the up move again. Please note that if it breaks below 23897.80 and sustain on the closing basis then correction may deepen further.

For 24-7-2017- Volatility is expected and possibility of correction is also there, therefore the long trade seems very difficult to handle at this juncture. It is therefore suggested that safe trader should avoid long trade for the day.  But the aggressive day trader  can try long call if it maintains above 24258 for some time with a stop loss of below 24190 or can try if it breaks out above the weekly range of 24300 and sustain for some time with a stop loss of below 24240. Buy on decline can also be tried near the range of 24053—23985 with a stop loss of below 24930 but it could be a risky trade for the day because as I am anticipating it to correct any day on the closing basis and if that happens then it may not move up and can  go down further also. Therefore overall I feel that it is a highly risky zone for long trade at any point, so be vigilant and cautious in long trade.    

Remark: - The trend is up, but in view of the above observation it seems that it is highly vulnerable for a correction and possibility of it increase with each passing up day and it can happen anytime soon now. Therefore I would avoid long call for the day. However if I have to try it at all I would prefer to try it only if it moves and sustains above 24300 for some time with suggested stop loss.

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.