A TECHNICAL VIEW ON CNX--BANK NIFTY--4-12-2017

CNX--BANK NIFTY

Open-25409.55--High-25441.35--Low-25152.65—Close-25191.95 on

 4-12-2017.

(Bold and underlined figures are important)

MajorSupport:- 25186.05/25119.50/25103/25058.70/24878.65/24798.65/24782.30/24560/24505.89/24496/24422/24163.90/24079.58.

MajorResistance:-25198.80/25332.40/25400.69/25409.55/25611.55/25620.95/25695.75/25924.90/25953.50/26029—52/26180/26331.88/26441.80.

For-4-12-17 the intra-day short support and resistance levels are given here-under:-

Support:- 25186.05/25119.50/25103/25058.70/24878.65/24815/24798.65/24782.30/24749/24560/24505.89/24496/24422/24370/24163.90/24079.58.

Resistance: 25198.80/25253/25332.40/25400.69/25409.55/25477/25537/25566/25596/25611.55/25620.95/25695.75/25924.90/25953.50/26029—52/26180/26331.88/26441.80.

Further to my last post on 16-11-17 it had huge up move and it made a new all time high of 25953.50 on 28-11-17 but in last two days it fell sharply and lost more than 600 points. Please note that two days fall had eaten last 20 days up move and technical setup has also weakened. Furthermore it was an impulse down move and if it does not recover fast  then it may be heading for much lower levels in coming days/ weeks. Now it is near its recent major bottom of 25119.50, so chances are that it may make an attempt to stage a pullback from here but sustained break below it on the closing basis may drag it down fast which may please be noted. Moving down it may find good support at 25058.70/24782.30/24505.89/24370 (it changes every day) and it may bounce back from any of these points but sustained break below 24370 will threaten the uptrend. Similarly going up it will find stiff resistance from its short term moving averages which are clustered in the range of 25341.65---477—566—596---686 (it changes every day) for the day and then from some of its long term averages which are placed in the range of 25830—26088(it changes every day) now, so moving up may not be easy and smooth this time . The bias is negative as of now but its relative strength is better in comparison with Nifty.

In view of the above observation, it seems that it is mildly sell on the rise market now, therefore safe trader should avoid long trade till it moves above its short term moving averages and sustain on the closing basis. But aggressive trader can try long trade if it holds 25119.50 levels for at least two hours of trade then, with a stop loss of below 25050. Please note that long trade may be a highly risky bet at this point of time. Short trade relatively seems a better option and can be tried on the rise and possible sell point range for the day could be between 25341---440 with a stop loss of above 25480 or can sell below 25150 with a stop loss of above 25200 and add on position below 25119.50 with a stop loss of above 25155.   

Remark: - The trend is up, but last two days huge down move indicates that it could drift down further in coming days, therefore be circumspect in long trade. Short trade seems a better bet and would be safe to try if it moves and sustain below 25119.50. But can be tried on the rise too as suggested above. The overall technical outlook for short term looks bearish.

  

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.