A TECHNICAL VIEW ON CNX--BANK NIFTY---28-7-2017

CNX--BANK NIFTY

Open-24857.50--High-25032.25--Low-24799.40—Close-24922.40 on 27-7-2017

MajorSupport:-24672/24455/24053.70/23897.85/23717/23708/23684/23610.

Major Resistance:-25356/25517/25543.

For-28-7-17 the intra-day support and resistance levels are given here-under:-

Support:-24799.40---72.40/24672/24500/24455/24299.60/24250/24234/24146/24053.

Resistance:-25033/25210/25356.

It just refuses to stop going up and today was the 12th day in a row it moved up .Furthermore it opened with a up gap and finally closed at a new high but the gap it created still exist, so if it attempts to fill the gap in next 3-4 days which is technically possible then it may come down to 24720.

Please note that the gap up open at the top end of the market could be sign of a strength or weakness. If it is a breakaway gap then further big rise is ahead and if this is an exhaustion gap then the top may be near. Since after rising for 11 day in a row it opened with a gap on the 12^th day at the top and the gap is still there, therefore it seems that it could be an exhaustion gap. However next 3-4 trading session will confirm it. It is needles to mention here that the vulnerability for correction is increasing by leaps and bound with each passing up day. It is therefore advised to be extremely vigilant and careful in long trade commitments henceforth.

  

For 28-7-17 long call can only be tried if it moves and sustain above 25033 with a stop loss of below 24900 for a target of 25190—210/ Avoid buy on decline strategy for the day for sure. Although there is no sign of trying short call in the market now  but in view of above observation it could be worth trying short call  below 24799 with a stop loss of above 24930 for a target of 24720/24672/24500.It could be a highly risky trade.

Remark: - The trend is up, but since it is highly vulnerable for correction therefore I would definitely avoid long call for the day personally, instead look for a short call opportunity.

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.