A TECHNICAL VIEW ON CNX--BANK NIFTY---28-9-2017

CNX--BANK NIFTY

Open-24308.70--High-24331.85--Low-23766.60—Close-23812.95 on

 27-9-2017

MajorSupport:-23708.65/23311.85/23029/22996/22978/22578.

MajorResistance:23822.20/23852.65/23897.85/23964.80/24103/24103—156/24455/24494.35/24496.20/24591.80/24651.05.

For-28-9-17 the intra-day short support and resistance levels are given here-under:-

Support:-23765/23715/23636/23580/23341/24216.

Resistance: 23822.20/23946/24022/24103/24151—156.

It was expected to give a pullback and it did give and opened firmly with an up gap, but did not maintain at the upper level and not  even  lasted for 10 minutes and started moving down and in the later part of the day it plunged down sharply and broke it recent major bottom of 23822.20 and closed below it, which shows tremendous inherent weakness in it and indicates further fall ahead. Furthermore it is also important to mention here that its long term moving averages are not far away and are placed in the range of 23341-----21902(it changes every day) for 28-9-2017 and sustained break below 23341 will threaten the uptrend and sustained break below 21902 will possibly end the uptrend which may be kept in the back of the mind.

Kindly note that down move of 22^nd, 25th &27^th Sept-2017 clearly indicates that it is an impulse down move and it may continue for some time; furthermore looking at the technical indicators such as RSI (negative divergence) & MACD (sell mode) (see my post of 25-9-2017) therefore there is a distinct possibility also that the long term uptrend may be in danger and it is likely to see much lower levels in coming days/ weeks. Today’s massive fall confirms that now it is clearly a sell on the rise market, however it may witness in between short up move from time to time but long call should be avoided for taking advantage of these up moves and long call should only be attempted when it gives visible indication of bottom formation.  

The range for the day would be 24216---24102----24079---24022---23946---23852----23822.20----23765----23715---23636---23580----23341 It is advised to avoid long call but contrarian trader if they wish to can try long call if it maintains above 23822.20 for some time with a stop loss of below 23765;but it could be a risky trade. Therefore it is suggested to adopt sell on the rise strategy and the possible good sell point for the day could be 24022/24078—24095/24156 with a stop loss of above 24220 or sell if it maintains below 23822.20 for some time with a stop loss of above 23900. 

Please watch the market for sometime before initiating the trade.  

Remark: - The expected pullback happened but lasted just for less than 10 minutes and fizzled out. In view of the above observation long call should be avoided and sell on the rise at appropriate points or below key support point strategy should be followed till a good bottom is formed.

 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.