A TECHNICAL VIEW ON CNX--BANK NIFTY---2-8-2017

CNX--BANK NIFTY-FOR- 2-8-2017

Open-25152.85--High-25179.50--Low-25000.65—Close-25122.80on

 1-8-2017

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-1-8-17 the intra-day support and resistance levels are given here-under:-

Support:-25032.25/25000/24672/24651.05/24551.78/24455/24299.60/24250/24234/24146/24053.

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

It gave upside breakout from its monthly high of 25168.10 but could not sustain above it and slipped down to close at 25122.80. However technical setup is on a strong footing as of now, therefore it seems that it may cross the level of 25168.10 again and the up move may continue. But be careful if it breaks the level of 24950 on the downside.

Although technically or otherwise everything looks o.k. now, but not to forget that today Reserve Bank of India is going to announce credit policy and there may be huge build up of long position in it because of high hopes for a substantial rate cut. So whatever be the outcome of the policy , there may be huge volatility in it during the day and last but not the least profit booking will definitely emerge may be immediately after announcement of the policy or a day or two later. Therefore it is suggested to be highly cautious in your long trade commitments in view of the event.  

          TRADING STRATAGY FOR-2.8.2017

1. Long call can be tried if it sustain above 25123 for some time with a stop loss of below 25000 for a target of 25170/25269/25356/25440.

2. It would be relatively safe to try long call if it moves and sustain above 25168.10 for some time with a stop loss of below 25080 for a target of 25269/25356/25440.

3. Safe trader should avoid buy on decline strategy for the day in light of the event. But aggressive trader may try buy on decline near but not below 25033 with a stop loss of below 24950.

Remark: - The trend is up. Therefore long call can be tried as suggested above. But it would be better to try long call above 25170 and avoid buy on decline for the day.

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.