CNX-Bank Index-Technical Overview For The Week Starting From-23-6-14

CNX-Bank Index closed at 14997.65 on 20-6-2014

Range for the week ended 20-6-14  was :-15461.55----14858.90

SUPPORT :-  14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60

RESISTANCE: - 15373.20 / 15461.55 / 15464.85 / 15568.05 / 15660.05 / 15725.80 / 15742.05

Index moved in the range of 600 points during the week under review and closed the week near the lowest point of the range which indicates weakness, furthermore the close was below the previous closing bottom of 15030 so the lower top and bottom chain on line chart still continues and this indicates that the deep down correction in the index could happen in the coming week.

TECHNICAL OBSERVATION:- Index is still making lower top and bottom on the line chart but on the bar chart it had made lower tops but has not breached the recent bottom of 14858.90 yet. The technical parameter is showing negative divergence on daily line chart which indicate that index could break the level of 14793, since it is also way below its short term DMA of 15273 for 23-6-14 therefore it is expected that it will break the bar chart recent bottom of 14858.90 and this break could trigger deep down correction, going down good support levels for index are at 14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60.from where the index could bounce back. The range of 14058-14308 is having a bottom at 14063.60 and cluster of moving averages therefore this is a huge support area for index but if it starts trading below this level then one has to think otherwise, chances of which are looking very slim at this point of time. To regain strength and upward momentum again it has to go above its short term DMA and stay there for a reasonable period of time.

MY VIEW:-
1. Deep correction looks imminent
2. Index is expected to break level of 14858.90 & 14793 in the coming week.
3. In best case scenario index could complete correction in the range of 14450-14600.
4. In worst case scenario index could complete correction in the range of  14200-14350.

REMARKS:-Long term up trend still intact but avoid long calls till the clarity on down correction completion is visible. 

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL        PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Nifty-Technical Overview For The Week Starting From-23-6-14

 NIFTY CLOSED AT 7511.45.10 ON 20-6-14

Range for the week ended on 20-6-14 was:-7663 -7487.55.

SUPPORT:-7487.55 / 747 / 7409 / 7360 / 7340 / 7263 / 7229 / 7206.70 /
7193.55 / 7118.45.

RESISTANCE :- 7563.50 / 7663 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty’s move was volatile during the week under review and it hit a high of 7663 and low of 7487.55 before closing the week near the lowest range, furthermore the close was below the previous closing bottom of 7533.55 so the lower top and bottom chain on line chart continues and this indicates that the deep down correction in the nifty is in the offing in coming week.

TECHNICAL OBSERVATION:- Nifty is still making lower top and bottom on the line chart but on the bar chart it had made lower top but has not breached the bottom of 7487.55 yet. The technical parameter is showing negative divergence on daily line chart which indicate that nifty could break the level of 7402 & 7229, since it is also way below its short term DMA of 7592 for 23-6-14 therefore it is expected that it will break the bar chart recent bottom of 7487.55 and this break can trigger deep down correction, going down good support levels for nifty are at 7477 / 7402 / 7340 / 7263 / 7220-7118.from where the nifty could bounce back. The range of 7118-7220 is having a bottom and cluster of moving averages therefore this is a huge support area for nifty but if it starts trading below this level then one has to think otherwise, chances of which are looking very slim at this point of time. To regain strength and upward momentum it has to go above its short term DMA and stay there for a reasonable period of time.

MY VIEW:-
1. Deep down correction seems inevitable.
2. Nifty is expected to break 7487.55level in the coming week.
3. In best case scenario nifty could complete correction in the range of 7340-7402.
4. In worst case scenario nifty could complete correction in the range of 7180-7260.

REMARKS:-Long term up trend still intact but avoid long calls till the clarity on down correction completion is visible. The traders can try short calls a appropriate levels with adequate stop loss or on the safe side can buy PUTS of strike rate 7500 &7400.

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION.

 Contact me for strategic guidance to enter and exit the trade

Trading Calls For-20-6-14

Nifty-Tehnical View(20-6-14)

Nifty closed at 7540.70 on 19-6-2014

SUPPORT:- 7533.55 / 7487.55 / 7477/ 7457 / 7409 / 7340 / 7263 / 7229/7200

RESISTANCE: 7563.50/  7631.70/ 7656.40/ 7678.50 / 7700

Nifty opened firmly and went above the short term DMA of 7595 but could not sustain today also and went down sharply and made a low of 7502.55 for the day before closing down at 7540.70 this movement suggests that weakness is still there .

 The only silver lining in today’s movement was that it went below the closing bottom of 7533.55 several times during the day but eventually closed above that, as long as it hold this bottom on closing basis one can expect bounce back from here. Since the closing is very near the bottom and it is still way below the short term DMA of 7598 for 20-6-14, therefore chances of holding this bottom looks weak .It will regain strength only if it consistently stays above short term DMA and close above the recent closing top of 7631.70.

      (Technical View remains the same as posted on 18-6-14 with change in some figures)

Technical View:-Nifty is making lower top and bottom on the line chart and technical parameters are showing negative divergence on the daily chart and if it comes into play then it can drag down the nifty to 7220 level in days to come, but I always say that divergence should be viewed in sync with moving average placements and not in isolation. Since nifty is below short term DMA therefore I am apprehensive that the negative divergence could play spoil sport. The divergence could only be negated if nifty goes above short term DMA which is placed at 7598 for 20-6-14 and stays and close reasonably above 7631.70, or if it could close above today’s close of 7540.70 on 20-6-14 and then crosses 7631.70 the next day and close above this, on the other hand if nifty breaks 7533.55 level and closes below this and finally goes below 7487.55 then the negative divergence will come into play.

REMARK:- Avoid long calls till the clarity on  down correction completion is visible, aggressive trader can try short call below 7533.55 with a stop loss of 7570 for a target of 7477

   NOTE:-
1.PRICE STATED HERE IS OF SPOT MARKET.
 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

   3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Trading Calls For-19-6-14

CNX-Bank Index-Technical Overview(19-6-14)

CNX-Bank Index closed at 15220.40 on 18-6-2014

SUPPORT:- 15083.90 / 15030 / 14858.90 / 14793/ 14709.30

RESISTANCE: 15350 / 15373.20 / 15464.85 / 15567.40

Index opened on flattish to positive note and made a high of 15461.55 for the day but did not sustained above the short term DMA of 15357.94 and went down sharply and hit a low for the day at 15128.45 before closing down at 15220.40.this move signifies that correction is still on.

Technical View:-Index is making lower top and bottom on the line chart and technical parameters are showing negative divergence on the daily chart and if it comes into play then it can drag down the index to 14790 level in days to come, but I always say that divergence should be viewed in sync with moving average placements and not in isolation. Since nifty is below short term DMA therefore I am apprehensive that the negative divergence could play spoil sport .

The divergence could only be negated if index goes above short term DMA which is placed at 15350 for 19-6-14 and stays and close reasonably above 15373.20, or if it could close above today’s close of  15220.40 on 19-6-14 and then crosses 15373.20 &15464.85 the next day and close above this, on the other hand if index breaks 15030 level and closes below this and finally goes below 14858.90 then the negative divergence will come into play

REMARK:- Avoid long calls till the clarity on  down correction completion is visible.however if any one want to take a long call the stop loss would be 15070.

  NOTE:-

1.PRICE STATED HERE IS OF SPOT MARKET.
 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

   3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Nifty-Technical Overview(19-6-14)

Nifty closed at 7558.20 on 18-6-2014

SUPPORT:- 7533.55 / 7487.55 / 7477/ 7409 / 7340 / 7263 / 7229/7200

RESISTANCE: 7563.50/  7631.70/ 7656.40/ 7678.50 / 7700

Nifty opened on flattish to positive note and made a high of 7663 for the day but  did not sustained above the  short term DMA of 7595 and went down sharply and hit a low for the day at 7515.50 before closing down at 7558.20.this move signifies that correction is still on.

Nifty’s today’s close  was disturbing and given an indication that the correction may last little longer and may be deeper also.

Technical View:-Nifty is making lower top and bottom on the line chart and technical parameters are showing negative divergence on the daily chart and if it comes into play then it can drag down the nifty to 7220 level in days to come, but I always say that divergence should be viewed in sync with moving average placements and not in isolation. Since nifty is below short term DMA therefore I am apprehensive that the negative divergence could play spoil sport .

The divergence could only be negated if nifty goes above short term DMA which is placed at 7595 for 19-6-14 and stays and close reasonably above 7631.70,or if it could close above today’s close of  7558.20 on 19-6-14 and then crosses 7631.70 the next day and close above this, on the other hand if nifty breaks 7533.55 level and closes below this and finally goes below 7487.55 then the negative divergence will come into play. 

REMARK:- Avoid long calls till the clarity on  down correction completion is visible because chances of negative divergence coming into play looks possible.Therefore aggressive trader can try short call below 7533.55 with a stop loss of 7570 for a target of 7477 or below

   NOTE:-
1.PRICE STATED HERE IS OF SPOT MARKET.
 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

   3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

CNX-Bank Index-Technical View For-18-6-14

CNX - Bank Index closed at 15373.20 on 17-6-2014

 I expected the index to complete down correction in the 2nd half on 17-6-14 or latest by18-6-14  (see my post dated 13-6-14) and today,s move indicate that the correction may be over,if it is so then it should not go  below the short term  DMA which is placed at 15357.94,15322.73&15274.77, for 18-6-14 and close below this, if it does then  the other major supports exist at 14858.90(Recent bottom made on 16-6-14) and bottom of 14709.30 made on 30.5.14. Kindly note that now any close below 14858.90 will trigger fresh  and deep correction in the index ,therefore the base level support for index is at 14858.90 for now and finally at 14709.30.

 

REMARK:- It seems that correction may be over but watch out for close above 15464.85 for further confirmation that correction is over .

   NOTE:-

1.PRICE STATED HERE IS OF SPOT MARKET.

        2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

        3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade