A TECHNICAL VIEW ON CNX--BANK NIFTY---4-8-2017

CNX--BANK NIFTY

Open-25002.85--High-25005.15--Low-24619.60—Close-24675.05 on

 3-8-2017

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

Major Resistance:- 25032.25/25268.80/25356/25517/25543.

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

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

Resistance:  25032.25/25168.10/25198.80/25268.80/25356/25440/25517/25543.

It opened on a weak note and as envisaged went down sharply and hit a low of 24619.60 before closing the day with a huge loss of 380 points at 24675.05. It exhibited all round weakness today breaking some of its short term moving averages, short rising trend line and recent bottom of 24651.50 intra-days. Furthermore certain technical indicators are showing negative divergence also which indicates that weakness may deepen and it may fall further from here , if it does not bounce back sharply above 25032.25 and then move above its recent high of 25198.80 in next 3-4 trading session which may be noted. Looking at today’s move chances are that it may head downward and moving down it will find support at its recent bottom of 24651.05 and then from one of its long term moving averages range which is between 24495---24300(it changes every day) for 4-8-17. Going down it may bounce back from this range, so long call can be tried in this range but sustained break below 24300 can drag it down sharply which please note.  

In view of the above observation long call should be avoided till the on-going fall is arrested and it starts moving up again but can be tried in the range mentioned above. Last but not the least in light of short term moving average break, trend line break, recent bottom break and negative divergence on the chart short call can also be attempted but it cannot be emphatically said at this moment that it is sell on the rise market now. However in last two days and particularly today its technical setup has reasonably weakened which may be noted.

          TRADING STRATAGY FOR-4.8.2017

1.  Long call can be tried on decline in the range of 24495---24300 with a stop loss of below 24230.

2. Short call can be tried on the rise but not above 24870 with a stop loss of above 24950.

OR

Short call can be tried if it move below 24651 and sustain with a stop loss of above 24790. Please note that short call could be a risky bet but considering last two days weak move, it would be worth trying.

Remark: - The trend is still up. But today’s sharp down move has jolted the chart structure and weakness surfaces, therefore long call should be avoided in general but  can be tried only as suggested above.  But looking at today’s huge down move short call seems a better bet if price movement favors.  

 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.