A TECHNICAL VIEW ON CNX--BANK NIFTY--2-11-2017

CNX--BANK NIFTY

Open-25197.30--High-24549.35--Low-25171.75—Close-25490.45 on

 1-11-2017

MajorSupport:- 25475.70/25379.48/25198.80/25186.05/25171.75/25105.35/25078.65/24881.26/24878.65/24798.65/24685.43/24560.75.

MajorResistance:- 25542.73/25549.35/26180/26441.80.

For-2-11-17 the intra-day short support and resistance levels are given here-under:-

Support:-.25475.70/ 25379.48/25198.80/25186.05/25171.75/25105.35/25078.65.

Resistance: 25533/25542.73/25549.35/25666/25790/26180/26441.80.

Further to my last post on 23-10-2017 after showing all the weakness it bounced back in a robust manner after the Government announcement of fund infusion in the PSU Banks and surpassed its previous high of 25198.80 today. It opened with an up gap today and made a new high of 25549.35 but it did not make any effort to fill the gap it created today so it is still there and if it makes an attempt to fill the gap in next 3-4 days ,which is technically possible then it may come down to 25078. Furthermore it is yet to move above its tough resistance range which is between 25533---25666---25790(it changes every day) but the price pattern is strong as of now and if it remains so for few days then it may cross the aforesaid resistance range too and may  go beyond 26000. But if it fails to cross the said range and break the 25198---25186.05---25105---25078 range and sustain on the closing basis then it may witness moderate to deep correction. The trading range for now is between 25180---25542.73---25666---25790 it may change from time to time depending on the price movement. The bias is up as of now but the possibility of correction is also there because it is still trading below it tough resistance range. So trader should be cautious in long trade.

In view of the above observation long trade can be tried on decline at appropriate points (see support point for this) but not below 25180 with a stop loss of below 25060. Aggressive trader can try long call now also but are advised to structure their trade keeping the aforesaid trading range in mind.

Remark: - The trend is up and prices are firm but since it is running below its strong resistance range, so the possibility of correction is also there. Therefore buy on decline strategy seems better option 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.