A TECHNICAL VIEW ON CNX--BANK NIFTY---7-8-2017

CNX--BANK NIFTY

Open-24629.50--High-24879.70--Low-24591.80—Close-24827.45 on

 4-8-2017

MajorSupport:- 24672/24651.05/24591.80/24551.78/24455/24299.60/24053.70/23897.85.

Major Resistance:- 25032.25/25168.10/25198.80/25356/25517/25543.

For-7-8-17 the intra-day support and resistance levels are given here-under:-

Support: - 24823/24735/24672/24651.05/24591.80//24455/24299.60/24250/24234/24146/24053.

Resistance:24879.70/24895/24967/25032.25---25077.40/25168.10/25198.80/25268.80/25356/25440/25517/25543.

After two days of fall although it staged a recovery today but to regain the up momentum rhythm it has to move above the long range of 25077.40---24967---24895---24823---24735---24651 and sustain. Technically it is still good therefore chances are that it may cross the said range and sustain above 25077.40 ,but if it has to cross the range then it should happen in coming week starting from 7.8.17 else there is a distinct possibility of it slipping down. Moving down again it will find support at 24735/24675 & 24651 and then support from one of its long term moving averages range which is between 24552—24455---24355(it changes every day) and  very important for 7-8-17. Going down it may bounce back from this range, so long call can be tried in this range but sustained break below 24355 on the closing basis can drag it down sharply which please note. Although the technical setup is still o.k., but the bias as of now is slightly tilted towards down side.

In view of the above observation it would be safe to try long call if it moves and sustain above 25077.40. However long call can also be tried on decline near 24675—24651 then near 24591.80 but not below it, although it has bed of support in the range of 24552---24355 but since  24591.80 is last week low and if it breaks below it and sustain then it may break 24355 level too and then down move may  accelerate. Therefore avoid long call below 24591.80 for the entire coming week. The various trading option are given here under:-   

          TRADING STRATAGY FOR-7.8.2017

1. Aggressive trader can try long call if it moves and sustain above 24895 for some time with a stop loss of below 24800.

OR

Long call can be tried on decline near but not below 24675 with a stop loss of below 24580.

3. Although there is no clear signal of going short in the market, but short    call can be tried if it moves below 24675 and sustain for some time with a stop loss of above 24735. It could be a risky trade and stop loss may be triggered but worth trying.

Remark: - The trend is still up as of now. But since the bias is slightly tilted towards downside as of now, therefore it is suggested to avoid long call now but can be tried 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.