A TECHNICAL VIEW ON CNX--BANK NIFTY---3-8-2017

CNX--BANK NIFTY-FOR- 3-8-2017

Open-25190.40--High-25198.80--Low-24926.25—Close-25055.20 on

 2-8-2017

MajorSupport:-25032.25/24672/24651.05/24551.78/24455/24254.55/24053.70/23897.85/23774/23708/23684/23610/23477/23403.

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

For-3-8-17 the intra-day support and resistance levels are given here-under:-

Support:-25032.25/24850//24672/24651.05/24551.78/24455/24299.60/24250/24234/24146/24053.

Resistance:-25168.10/25198.80/25268.80/25356/25440/25517/25543.

It opened with an up gap above its monthly high of 25168.10 and made

a new high of 25198.80 but could not sustain above its monthly high and slipped down immediately. After the Credit policy announcement it plunged down further and hit a low of 24926.25 and gave real time close near the low at 24956 but the adjusted close was much higher at 25055.20 .This volatility was expected because of the event, therefore it may require at least 1-2 days trading session to decide which way it want to move from here. The overall technical setup is o.k. as of now but today’s move indicates some weakness and it may deepen if it fails to hold 25032.25. The range for the day is 25198.80---25168.10---25032.25----24850. Furthermore it has made multiple tops in the range of 25168.10---25198.80 in last three days, so moving up this range will pose stiff resistance. Similarly moving down 24850 is the last support for the day and break below it can take it down to 24651/24551. In view of the above observation it is suggested to avoid buy on decline strategy for the day. Although there is no clear indication of trying short call now but  in light of today’s weak movement  contrarian short call could be worth trying as suggested here under :-    

          TRADING STRATAGY FOR-3.8.2017

1. Long call can be tried if it sustain above 25123 for some time with a stop loss of below 25020 for a target of 25170/25269/25356/25440.

2. It would be relatively safe to try long call if it moves and sustain above 25198.80 for some time with a stop loss of below 25080 for a target of 25269/25356/25440.

3. If it fails to cross the level of 25168.10 in first 2 hours of trade then short call can be tried on the rise but below 25168.10 with a stop loss of above 25210 OR can sell if it maintains below 25032.25 for some time with a stop loss of above 25125.Please note that short trade could be  risky  and stop loss may be triggered but worth trying.

Remark: - The trend is up. Therefore long call can be tried as suggested above. But it would be better to try long call above 25198.80 and avoid buy on decline for the day. Short call can also be attempted 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.