A TECHNICAL VIEW ON CNX--BANK NIFTY---11-9-2017

CNX--BANK NIFTY

Open-24409.50--High-24419.25--Low-24273—Close-24370.80 on

 8-9-2017

MajorSupport:-24156--51/24103.30/23897.85/23852.65/23822.20/23708.65.

MajorResistance: - 24422.45/24494.35/24496.20/24591.80/24651.05/24979.35.

For-11-9-17 the intra-day short support and resistance levels are given here-under:-

Support:-24322---230/24156---151/24103.30/24053/23897.85/23852.65.

Resistance: 24422.45/24440/24455/24496.20/24591.80/24651.05/24979.35.

Further to my last post of 4-9-2017. It moved in an expected range of 24496.20---24103.30 (see my post of 4-9-2017) during the week ended on 8-9-2017. Although it made higher bottom during the week at 24151.10 but it is not making consistent higher top which is concerning. The trading range for the week starting from 11-9-2017 would be same as last week i.e. 24496.20---24103.30 with an alert point at 24151.10 for long trade. It is therefore suggested to try long call only if it moves above 24496.20 and sustain for some time with a stop loss of below 24370, avoid buy on decline strategy for now, however aggressive trader if they wish to can try long call near 24151 with a stop loss of below 24100 but it could be a risky bet mind you. Please note that the threat points for end of this rally would be break and sustained close below the important bottom of 24103.30. But even if it breaks 24103.30 level it has strong support in the range of 23897-----23822.20, so the real breakdown can only happen if it breaks and sustain below 23822.20,but one should be careful in long trade below its recent bottom of 24151.10 and its important bottom  of 24103.30(see my post of 4-9-2017).

It is very important to mention here that after making an all time high of 25198.80 it fell by more than 1375 points in just 7 days and made a bottom at 23822.20, it seemed to be an impulse down move. Thereafter it started moving up and in 4 days it made a lower top at 24496.20 and fell again to make bottom at 23852.65 and thereafter  12 days have already past but it has not been able to cross the recent top of 24496.20 even leave aside crossing it’s all time high of 25198.80. So this up move is not an impulse move in any case, had it been an impulse up move it would have crossed the all time high either in half the time or in equal time which it took to fall i.e. in 4 or 7 days. Therefore it is just a corrective up rally and may fizzle out any moment and then may starts to move down sharply or it can be said that by moving in a short range now it may be creating a classic bull trap and long trader may be caught unaware once the on-going up move end abruptly. But if in case it moves otherwise then it has strong resistance moving up at 24511/24673/24874/24924 and it has to move above 24924 and sustain on the closing basis, then only it may regain the up momentum and  could make an attempt to cross its previous all time high of 25198.80 but chances of happening this looks slim at this point of time(see my post of 4-9-2017).

Furthermore on the weekly chart there is the strong negative divergence in RSI and MACD is also in the sell mode, therefore as of now it indicates that it may drift on the downside and may hit 23200 or lower levels in coming days/ weeks, therefore long trade should be handled with extreme caution and care because this on-going up move is likely to end abruptly also and may trap the long trader unaware.  

Remark: - It has topped out at 25198.80 for sure as of now. In view of the above observation long can only be attempted if it sustains above 24511 but even then in view of the negative divergence in RSI and MACD in sell mode on the weekly chart, one should be extremely vigilant and cautious in the long trade.  I would personally prefer to avoid long call till it moves above 24924 and sustain or may try after a reasonable decline, instead I will look for an opportunity to go short now.

 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.