A TECHNICAL VIEW ON CNX--BANK NIFTY---27-7-2017

CNX--BANK NIFTY

Open-24578.15--High-24720.90--Low-24484.90—Close-24670.70 on 26-7-2017

Major Support:-24455/24053.70/23897.85/23717/23708/23684/23610.

Major Resistance:-24672/25356.

For-27-7-17 the intra-day support and resistance levels are given here-under:-

Support:-24590/24455/24299.60/24250/24234/24146/24053.

Resistance:-24672/24755/24965.

It has been moving up vertically and relentlessly for last 11 days in a row. Although it is showing good strength technically, but the vertical rise is scary, however it may continue to rise for another few days but it cannot go on like this without correcting. Furthermore with each passing up day in a row the vulnerability for correction increases immensely, so the correction may set in any moment before further up move and it may trap long trader on wrong foot. Furthermore in technical parlance it is said that a vertical rise may have vertical fall too, so the correction could be devastating, which may please be noted. Therefore I once again caution that one should be extremely vigilant and careful in long trade commitments henceforth.

For 27-7-2017- It is July-17 series expiry, so huge volatility is expected. It is therefore suggested to trade in option rather than in future for the day. However aggressive trader can try long trade only if it sustain above 24672 for some time with a stop loss of below 24580 for a target of 24755/24880, it could be risky trade for the day. Avoid buy on decline strategy for the day for sure. Call option of 24700 can be tried now with a stop loss of below 24590. If it moves above in the range of 24755--24800 then buy put option of 24700 for the day with a stop loss of above 24850 or buy put option of 24600 if it starts to trade below 24660 with a stop loss of above 24725   

Remark: - The trend is up, but since it is highly vulnerable for correction therefore I would prefer to avoid long call personally. Instead look for opportunity to try short trade in option as suggested above.

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.