A TECHNICAL VIEW ON CNX---BANK NIFTY---28-8-2017

CNX--BANK NIFTY

Open-24374.75--High-24411.05--Low-24224.85—Close-24274.20 on

 24-8-2017

Major Support: - 24053.70/23897.85/23852.65/23822.20.

Major Resistance: - 24411.05/24455/24496.20/24591.80/24651.05.

For-28-8-17 the intra-day short support and resistance levels are given here-under:-

Support: -24224.85---24157/24105/24037/23897.85/23852.65.

Resistance:24300/24381/24411.05/24455/24496.20/24532.40.

It seems that it has  topped out for now at 25198.80 on 2.8.2017. Then it corrected and made a short bottom at 23822.20 and gave a pullback rally and in the process it has made a higher bottom at 23852.65 and the pullback rally is still on but since it has yet to make higher top, therefore until and unless it makes a higher top by crossing the earlier top of 24496.20 this rally may fizzle out anytime. But if it crosses the top of 24496.20 and sustain then this rally may extend further and may move to 24673/24874/24924 but it will regain the up momentum rhythm once it moves above 24924 and sustain.

In view of the above observation the trading range for 28.8.17 is between 24496.20---24037 and moving up it will face resistance at 24300/24381/24411.05/24455 and going down support at 24235/24157/24053. So trying long call before it crosses 24496.2 could be a risky proposition. But since it made a higher bottom, therefore those who wish to try long call can try above 24317 with a stop loss of below 24200, but it would be relatively safe to try long call if it moves and sustain above 24496.20 with a stop loss of below 24380.

It is important to mention here that as of now the technical indicators indicates that it is likely to drift down and break 23822 level for sure in coming days, if it sustains below 23822 then it can move down to 23530/23445/23311 chances of which are reasonably high as of now. However if it moves otherwise it has to go beyond 24673 and then 24924 and sustain on the closing basis. The pullback is on but the bias is on the downside as of now, so for safe trader it would be better to avoid long call.

Remark: - It has definitely topped out for now, but since it has made a higher bottom and the pullback rally is on and may be extended. Therefore aggressive trader can try long call as suggested above. But I caution that these relief rallies can fizzle out abruptly also, therefore instead of taking advantage of the pullback rally look for an opportunity to sell on the rise at appropriate points (strong resistance points could be the potential sell points-see resistance points mentioned above) or sell below the critical points till it gives sign of complete bottoming out, which looks reasonably away at this point of time.            

 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.