CNX--BANK
NIFTY
Open-24704.55--High-24709.70--Low-24340—Close-24368.85
on
22-9-2017
MajorSupport:-24156--51/24103.30/23897.85/23852.65/23822.20/25523.65/23311.85.
MajorResistance: - 24455/24494.35/24496.20/24591.80/24651.05/24791.85/24924/24979.35/24994.30/25032/25105.35/25198.80
For-25-9-17 the intra-day short support
and resistance levels are given here-under:-
Support:-24340--303/24193/24156---151/24103.30/24053/23897.85/23852.65.
Resistance: 24455/24496.20/24568---690.
Further to my last post of 11-9-2017. It did
move above its important point of 24924 but could not cross its all time high of
25198.80 therefore top out conclusion still holds (see my post of 11-9-2017) .It made a high of 25105.35 in this up move
and then slipped and has been falling for last 4 days and today it had massive
fall and it broke some of its most important levels and its short term moving averages also
therefore it seems that the on-going down move may continue till it bounce back
above its short term averages and important points which are placed in the
range of 24455---24690---24826. Moving
down it may find support at 24312---24303/24193/24151—103/24078 and it is possible that it may bounce back
from or around any of these points and may resume the up move again. But in
case it fails to bounce back then the correction may deepen and the threat
points would be break and sustained close below 24303 and then below 24078 .
But not to forget that it has strong support in the range of 23897-----23822.20,
(see my post of 11-9-2017), so the real breakdown can only happen if it breaks
and sustain below 23822.20 on the closing basis.
It is important to mention here that its
relative strength is weak in comparison with Nifty therefore it may have deeper
correction than Nifty. It is in corrective mode now but it can witness in
between short up move during the correction. Therefore those who want to take
advantage of these short up moves can try long call above 24455 with a stop
loss of below 24340, but it would be better and relatively safe to attempt long
call if it moves and sustain above 24555 for the day. Avoid long call
completely for the week starting from 25-9-2017 if it slips below 24340 and
sustain and try it only on the decline near the important support points
mentioned above with proper stop losses. In fact it is suggested to try short
call if it slips below 24340 and sustain for few minutes with a stop loss of
above 24455.
I once again reiterate that on the weekly
chart strong negative divergence in RSI still persist and MACD is also in the
sell mode, so if the correction continues for some time then it may drift on the downside and may hit 23200 or
lower levels in coming days/ weeks (see my post of 11-9-2017), therefore long trade should be handled with
extreme caution and care.
Remark: - It still seems that it has topped out at
25198.80. Now it is in corrective mode and how this correction culminates has
to be seen. But in view of negative divergence in RSI and MACD sell mode, it
could still go down sharply if correction persists for some time. Therefore it
is suggested to try long call only after the on-going fall is arrested and it
starts looking up or take your trading call 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.
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Thank you for sharing your views.