A TECHNICAL VIEW ON CNX--BANK NIFTY---16-10-2017

CNX--BANK NIFTY

Open-24411.10--High-24779.75--Low-24387.80—Close-24689.15 on

 16-10-2017

MajorSupport:- 24496.20/24494.35/24455/24422.45/24331.85/24200.60/24156—151/24103.30/24066/24053/23978.40//23897/23852/23822.20/23708.65/23611.

MajorResistance:-24779.75/24807—25/24881.26/24979.35/25032.25/25105.35/25198.80/26029/26180.

For-16-10-17 the intra-day short support and resistance levels are given here-under:-

Support:- 24496.20/24494.35/24455/24422.45/24387.

Resistance:24779.75/24807—25/24881.26/24979.35/25032.25/25105.35.

Further to my last post on 3-10-2017 after making bottom at 23611.10 on 28.9.2017 as expected it moved sideways for couple of days and then shot up reasonably well in last two days, although it is moving up but the RSI on the weekly and monthly chart are still showing huge negative divergence and MACD on the weekly chart is still in sell mode, so the indications does not seems good indicator-wise for the rise, furthermore its relative strength is weak in comparison with Nifty. However the prices are somewhat firm but to pick up smooth up momentum it has to move above its important points of 24806.50 & 24881.26 and sustain on the closing basis then possibly it can make an attempt to test or cross its previous top of 25105.35 &25198.80(all time high) and may make a new high also, else it may retreat from here and going down it will find very good support in the range of 24496---460---422 and break below this range can accelerate the fall.

In view of the above observation it is suggested to try long call only if it moves and sustain above 24806.50 & 24881.26 points with a stop loss of below 24770. Buy on decline should be avoided for now, however aggressive trader can try long call on decline also if they wish to near 24422 with a stop loss of below 24350, but it could be a risky trade mind you.  Please note that price movement does not indicate short trade here but if it fails to move above the aforesaid important points in next 1-2 days then contrarian trader can try short call below 24881.26 with a stop loss of above 24920, but it could be a risky trade mind you.

Remark: - The pull back move is on and it would be relatively safe to try long call if it moves and closes above 24806.50&24881.26. The underline strength does not seem that great therefore long trade should be handled with caution.

 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.