CNX-Bank Index-Technical Overview For The Week Starting From-30-6-14

CNX-Bank Index closed at 14992.35 on 27-6-2014

Range for the week ended 27-6-14 was :-15341.95----14940.35

SUPPORT: - 14940.35 / 14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60

RESISTANCE: - 15341.95 / 15461.55 / 15464.85 / 15568.05 / 15660.05 / 15725.80 / 15742.05

Index moved in the range of 400 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 14997.65 so the lower top and bottom chain on line chart continues and this indicates that the deep down correction in the index could happen in the coming week.

TECHNICAL  VIEW:-

1. It is making lower top and bottom on the line chart and still going down, to make higher top it has to cross and close above the recent top of 15309.50 & 15373.20 and to make higher bottom it has to create a bottom first since it is still going down on the closing basis, till then it should hold the level of 14793.40.

2. To make higher top & bottom on the bar chart it has to cross the recent top of 15341.95 & 15461.55 and hold the bottom 14940.35 or 14858.90 or 14709.30

3. It is still below its short term DMA which is placed at 15255 for 30-6-14(it changes every day), index to remain buoyant has to stay above its short term DMA..

4. The negative divergence is still there indicating that it can break the level of 14793.40.

5. The cluster of important averages are in the range of 14500-14250 for the start of the week i.e.  30-6-14 ,since it is increasing every day so by the end of the coming week the range would be 14690-14440.Index has to hold this range ,if it does not then it will be a cause of concern for the intermediate uptrend.

CONCLUSION: Index has to fulfill the above stated first 3 condition to negate the divergence and to confirm that the ongoing correction is over, if it does not then the correction may deepen and then the worst range for the index could be the important average range of 14690-14440 during the next week end and to keep the intermediate uptrend intact it has to hold this range, chances of which are looking reasonably good as of now. I feel that index possibly would complete the correction by next week and in the best case scenario it could bounce back from the range of 14650-14550 and in the worst case from the range of 14500--14300.

REMARKS: The month of June-14 would be ending on Monday, the month end will provide us with the indicative range for the month of July-14 and possible direction also and that will help us to make the trading relatively easy , therefore I suggest  not to trade at all on 30-6-14.

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-30-6-14

 NIFTY CLOSED AT 7508.30 ON 27-6-14

Range for the week ended on 27-6-14 was:-7593.35—7441.60.

SUPPORT:-7487.55 / 7481.30 / 7477 / 7409 / 7360 / 7340 / 7263 /  7206.70 /
7193.55 / 7118.45

RESISTANCE:- 7563.50 / 7593.35 / 7663 / 7678.50 / 7700.05 / 7855 / 7988 / 8011 /  8052 / 8195 / 8310

Nifty moved in a moderate range of 151.75 points during the week and closed  near the mid -point of the range. The range bound movement indicate that a big move on either side can happen in the coming week starting from 30-6-14.

TECHNICAL  VIEW:-

1. It is still making lower top and bottom on the line chart ,to make higher top and bottom it has to cross the recent top of 7580.20 and hold the bottom of 7493.20 on the closing basis.

2. To make higher top & bottom on the bar chart it has to cross the recent top of 7593.35 and hold the bottom 7481.30 or 7441.60.

3. It is still below its short term DMA which is placed at 7552 for 30-6-14(it changes every day),nifty to remain buoyant  has to stay above its short term DMA..

4. The negative divergence is still there indicating that it can break the level of 7402 & 7229.

5. The cluster of important averages are in the range of 7274-7192 for the start of the week i.e.  30-6-14 ,since it is increasing every day so by the end of the coming week the range would be 7330-7250.Nifty has to hold this range ,if it does not then it will be a cause of concern for the intermediate uptrend.

CONCLUSION: Nifty has to fulfill the above stated first 3 condition to negate the divergence and to confirm that the ongoing correction is over ,if it does not then the correction may deepen and then the worst range for the nifty could be the important average range of 7330-7250 during the next week end and to keep the intermediate uptrend intact it has to hold this range, chances of which are looking reasonably good as of now. I feel that nifty possibly would complete the correction by next week and in the best case it could bounce back from the range of 7400-7360 and in the worst case from the range of 7340-7250.

REMARKS: The month of June-14 would be ending on Monday, the month end will provide us with the indicative range for the month of July-14 and possible direction and that will help us to make the trading relatively easy , therefore I suggest  not to trade at all on 30-6-14.

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-30-6-2014

Trading Calls For-27-6-14

Nifty-Technical View-27-6-14

Nifty closed at 7493.20 on 26-6-2014 

SUPPORT:-  7487.55 / 7477/  7441.60 / 7409 / 7340 / 7263 / 7229/7200

RESISTANCE: 7563.50 / 7593.35 / 7635/ 7663/ 7678.50 / 7700.

Nifty opened weak at 7554.10 and moved down gradually during the day and made a low of 7481.30 before closing the day near the low at 7493.20, today’s move indicate that the ongoing correction can turn deeper as it has broken recent closing bottom of 7493.35 although by .15 points only, however it is still above its bottom of 7441.60 made on 23.6.14 on bar chart but seeing today’s move I don’t think it can hold this bottom. Furthermore the nifty has failed to  sustain above its short term DMA therefore there is good chance of negative divergence to come into play and if it happens then it can take the nifty to 7402 & 7229 level. To give an indication to negate the divergence it has to fulfill the following condition chance of which are looking weak at this point of time.

1.      It has to close above 7580.20 on 27-6-14 on line chart

2.      It has to hold bottom of 7441.60 and cross top of 7593.35 on the bar chart as of now

3.      It has to stay above its short term DMA for a reasonable period of time .The DMA is placed at 7554 for 27-6-14(it keeps on changing every day)

The nifty is having a cluster of moving averages in the range of 7261-7180 therefore  in worst case it is expected to bounce from these levels but if it starts trading below 7180 then it will be  a cause of concern for the  intermediate uptrend .

REMARK:- The chances of deep correction is becoming stronger and nifty coming to the levels of 7230-7350 cannot be ruled out, therefore I suggests to avoid long trades in nifty but one can try short call below 7487 with a stop loss of 7518 for a target of 7440 / 7402 / 7380. Kindly note that make your cost your stop loss in favorable trade and then trail it as the price moves up/down to gain maximum profit and avoid losses.

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Nifty-Technical View-26-6-14

Nifty closed at 7569.25 on 24-6-2014 

SUPPORT:- 7563.50 / 7547 / 7502 / 7487.55 / 7477/  7441.60 / 7409 / 7340 / 7263 / 7229/7200

RESISTANCE: 7580.20/ 7601 / 7635/ 7656.40/ 7678.50 / 7700.

Nifty moved in a very short range today and has not made any effort to cross closing top of 7631.70 and intra -day top of 7663 but remained above its short term DMA which is a good sign. Nifty closed lower today from the previous days close, so if it closes reasonably above 7580.20 on 26-6-14 then it will create a higher top and higher closing bottom of 7569.25 on line chart and that will give some positive indication but to give decisive signal of correction completion it has to cross the closing and intra-day top of 7631.70 & 7663 respectively and has to remain above its short term DMA which is placed at 7561 & 7547 for 26-6-14.

REMARK:- Avoid  trade in nifty till clarity on correction completion is visible

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Trading Calls For 26-6-14