A TECHNICAL VIEW ON CNX--BANK NIFTY---7-11-2017

CNX--BANK NIFTY

Open-25569--High-25694.60--Low-25529.50—Close-25571.15 on

 6-11-2017

MajorSupport:-25542.73/25475.70/25427.30(on the closing basis)/25198.80/25186.05/25171.75/25105.35/25078.65/24881.26/24878.65/24798.65/24685.43/24560.75.

MajorResistance:- 25650.70/25695.50/25812.86/25850/26180/26441.80.

For-7-11-17 the intra-day short support and resistance levels are given here-under:-

Support:-. 25529.50/25475.70/25427.30/25198.80/25186.05/25171.75/25105.35/25078.65.

Resistance: 25579/ 25695.50/25713/25836/25850/26180/26441.80.

It opened on a flat to positive note and moved up further but could not cross the previous day’s high of 25695.50, so it has made double top in the range of 25695.50 & 25494.60. Furthermore it has fallen below its tough resistance range which is placed at 25579---25713---25836(it changes every day) for 7-11-2017. The day’s movement was slightly weak but the technical setup is still o.k., but due caution is needed in long trade because it has made double top and slipped below its strong resistance range , therefore chances of it getting into corrective mode is also there. The expected trading range for the day would be 25696---25651---25520---25427 and if it moves above 25696 and sustain then the up move may continue ,similarly break below 25427 on the closing basis can accelerate the fall.  

In view of the above observation long call should only be tried if it moves above 25696 and sustain for some time with a short stop loss of below 25620. However aggressive trader can try long call even if it moves above 25651 and sustain with a short stop loss of below 25569, it could be relatively risky trade but worth trying. But please note that the authentic stop loss for all long trade would be below 25490 for the day. Avoid buy on decline strategy now.

Remark: - The trend is up but at this point the chances of it getting into correction mode also reasonably bright, therefore it would be safe to try long call above 25698 and avoid buy on decline today.  

 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.