A TECHNICAL VIEW ON CNX--BANK NIFTY--3-11-2017

CNX--BANK NIFTY

Open-25508.40--High-25598.25--Low-25405.50—Close-25427.30 on

 2-11-2017

MajorSupport:- 25390/25384.50/25335/25198.80/25186.05/25171.75/25105.35/25078.65/24881.26/24878.65/24798.65/24685.43/24560.75.

MajorResistance:- 25475.70/25542.73/25598.25/26180/26441.80.

For-3-11-17 the intra-day short support and resistance levels are given here-under:-

Support:-. 25405/25390/25384.50/25335/25198.80/25186.05/25171.75/25105.35/25078.65.

Resistance: 25475.70/ 25542.73/25546.29/25666/25790/25804.18/26180/26441.80.

It opened on a flat to positive note and made a new high of 25598.75; it pierced the lower band of the tough resistance range on the upside but eventually closed way below it and near the low of the day with a loss of 63.14 points. Furthermore the gap it created yesterday still exists and it can make an attempt to fill the same in next 2-3 days and if it does so then it can come down to 25078. The overall technical setup is good but looking at today’s move it seems that it may consolidate or correct from here before resuming the up move again. Its strong resistance range is placed at 25546.29---25679.47---25804.18 (it changes every day) for the day.

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 if it moves above 25491 and sustain for some time with a stop loss of below 25400, but since resistance range starts from 25546.29,it could be a risky trade.

Remark: - The trend is up and prices are firm ,but since it is running below its strong resistance range and closed at the lowest today, so the possibility of correction extending 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.