Sunday, 30 July 2017

A TECHNICAL VIEW ON CNX--BANK NIFTY---31-7-2017

CNX--BANK NIFTY

Open-24744.55--High-24859.75--Low-24651.05—Close-24811.30 on 28-7-2017

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

Major Resistance:-25356/25517/25543.                

For-31-7-17 the intra-day support and resistance levels are given here-under:-

Support:-24672/24580/24551.78/24455/24299.60/24250/24234/24146/24053.

Resistance:-25033/25250/25356.

It halted its continuous upsurge of last 12 days and took a pause today and closed with a loss of 111.10 points. It also filled the gap it created yesterday. It is important to mention here that the gap up & gap down open which it did in last two days near the top end is not a good sign and is a distinct indication of topping out. However since technically it is still on a strong footing, so today’s down move may not necessarily be an indicative that it can correct further from here ,it may resume the up move from here again , so next 2-3 days movement will confirm which way it will move. The present critical range for it is between 25033---24551 and if it breaks and sustain below 24551 then it may go in for deep correction and going down it may find support at 24455/24254.55/24053—14/23897.85/23774/23477/23403 and it may bounce back from any of these points, among the above support points the range of 24254—24000 is really important so it is possible that it could bounce back from this range and resume the up move again. But if it breaks below 24000 and sustain then it can go in for much deeper correction which may please be noted.

The bias is still upward but in view of todays down tick, it is suggested to be vigilant and cautious in your long trade commitments.  

TRADING STRATAGY FOR-31.7.2017

1. Long call can be tried if it moves and sustain above 24860 for some time with a stop loss of below 24780 for a target of 24930/25033/25150/25250.

2.  It would be relatively safe to try long call if it moves and sustain above 24925 for some time with a stop loss of below 24840 for a target of 25033/25150/25250.

3. Buy on decline strategy can also be tried in the range of 24650--580 but not below 24580 with a stop loss of below 24530.

Remark: - The trend is up. Therefore long call can be tried as suggested above. But it would be comparatively safe to try long call above 24930 or on decline at suggested range.


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.







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Thank you for sharing your views.