A TECHNICAL VIEW ON CNX---BANK NIFTY----4-9-2017

CNX--BANK NIFTY

Open-24389.20--High-24494.35--Low-24319.20—Close-24434 on

 1-9-2017

MajorSupport:-24207.70/24103.30/23897.85/23897.85/23852.65/23822.20.

Major Resistance: - 24496.20/24591.80/24651.05/24979.35.

For-4-9-17 the intra-day short support and resistance levels are given here-under:-

Support: -24326---260---207/24103.30/24053/23897.85/23852.65.

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

Further to my last post of 28-8-2017, it is still making higher bottom and the last bottom is at 24103.30 and also crossed short top of 24422.45 but yet to cross the important recent top of 24496.20. It came very close to it today but could not cross it, therefore crossing the top of 24496.20 is very important for the extended move of this on-going rally else this rally may end. However as long as it holds its recent bottom of 24103.30 chances is that it may cross the important top of 24496.20. Moving up from 24496.20 it will face stiff resistance at 24511/24673/24874/24924 and it could only regain the up momentum and may make an attempt to cross its previous all time high of 25198.80 if it moves above 24924 and sustains on the closing basis else this rally may end at or  around any of the said points . I once again repeat that till it breaks its last bottom of 24103.30 it may cross its important top of 24496.20 and this up rally may continue, but if it breaks the said bottom even then it has good support in the range of 23897-----23822.20, so the real breakdown can only happen if it breaks and sustain below23822.20 on the closing basis.

The trading range for 4-9-2017 would be 24651---24591---24511---24496.20----24389---24318---24207. Since it has yet to cross its important top of 24496.20 therefore buy on decline should be avoided for the day and long call should only be attempted if moves above 24496.20 and sustain with a stop loss of below 24300. The aggressive trader can try long call if it stays above 24438 with the same stop loss of below 24300 but it could be a risky bet.

It is important to mention here that although it is making higher bottom and top by crossing the short top of 24422.45 but yet to cross important top of 24496.20 on the daily chart. It is above its all short and long term moving averages. But not to forget that on the weekly chart the strong negative divergence in RSI is still intact and MACD is also in the sell mode , as of now it indicates that it may drift on the downside in coming days/ weeks, therefore long trade should be handled with extreme caution and care because this on-going up move can end abruptly also and may trap the long trader unaware.  

Remark: - It still seems that it has topped out at 25198.80 on 2.8.2017. It is making higher bottom now but it has not yet crossed its important top of 24496.20 therefore it cannot assumed that the on-going up move may be extended until and unless it crosses the top ,so long call should only be tried  above 24496.20. But 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. 

 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.