A TECHNICAL VIEW ON CNX--BANK NIFTY--8-11-2017

CNX--BANK NIFTY

Open-25669.10--High-25695.75--Low-25248.95—Close-25300.80 on

 7-11-2017

MajorSupport:-25247/25198.80/25186.05/25171.75/25105.35/25078.65/24881.26/24878.65/24798.65/24685.43/24560.75.

MajorResistance:-25353.05/25484.03/25598.75/25694.60---695.75/25812.86/25850/26180/26441.80.

For-8-11-17 the intra-day short support and resistance levels are given here-under:-

Support:-. 25247/25198.80/25186.05/25171.75/25105.35/25078.65.

Resistance: 25353.05/25484.03/25529/25598.75 25695.75/25724/25852/26180/26441.80.

It opened on a firm note and made a new high of 25695.75 then plunged down and broke last three days low and closed near the low of the day with a loss of 270.35 points. It also broke its recent bottom of 25427.30 on the line chart decisively and broke some of regression channel support line too but the last regression support line is at 25190 for 8-11-17. Overall it exhibited tremendous weakness today and as apprehended (see my post of 7-11-17) it seems that it has gotten into correction mode and it may last for few days before resuming the up move again, therefore long trade should be avoided till the fall is arrested and it starts looking up again. Going down its important support points are at 25247/25198.80/25186.05/25171.75/25141/25105.35 &25078, it may bounce back from any of these points but sustained break below 25078 may drag it down sharply. Similarly if it moves up it will encounter stiff resistance at 25484.03--25598.75--25694.60---695.75. It can gather up momentum only if it moves above 25695.75 and sustain on the closing basis and then crosses its tough resistance range, chances of which happening  fast looks   slim at this point of time.

In view of the above observation safe trader should try long trade only if it moves and closes above 25651 & 25696 or after the fall is arrested and it starts moving up again, but aggressive traders if they wish to can try long trade on decline in the range25198---25105 with a stop loss of below 25000, it could be a risky trade.  Since today was the first day of the fall therefore there is no clear indication of going fearlessly short in the market, but the price pattern indicate that correction may last for some time, therefore for taking advantage of this correction short trade can be tried if it breaks 25247 with a stop loss of above 25300 or on the rise in the range of 25490---25525 with a stop loss of above 25600.    

Remark: - The trend is still up but as anticipated it corrected today and that too sharply therefore it seems that the correction may last for couple of days, so long trade should be avoided now and can only be tried it moves and closes above 25651 & 25696 or after the fall is arrested and it show sign of moving up again. Instead short trade can be tried now as suggested above.

 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.