BANK NIFTY 27713

THE INDEX HAS CLOSED BELOW A VERY STRONG SUPPORT AREA AROUND 10600 LEVEL. IT IS LOOKING IN A OVERSOLD ZONE BUT STILL WE FIND NO SIGN OF RECOVERY OR REVERSAL. WE ARE OF THE OPINION THAT UNLESS AND UNTIL THE INDEX CONSOLIDATES AND MOVES BEYOND 10600 LEVEL TRADERS MUST AVOID EXPOSURE TO BANKING STOCKS. ON THE DOWNSIDE THE IMMEDIATE SUPPORT IS PLACED AROUND 10200 LEVEL. AS OF NOW BEARS ARE HAVING CLEAR UPPER HAND.

CNX AUTO : 9713

CNX AUTO INDEX POSTED LOWER HIGH BUT STOCHASTIC FORMED A HIGHER HIGH. TECHNICALLY IT IS CALLED BULL SET UP. EARLIER WE HAD DISCUSSED THE SAME IN CASE OF CAIRN INDIA AND IT SUCCESSFULLY DELIVERED. AGAIN BULL SET UP IS CLEARLY VISIBLE IN CNX AUTO CASE. THE INDEX WITNESSED A DECLINE AFTER BULL SET UP AND TESTED SUPPORT AREA AROUND 4500 LEVEL. NOW THE INDEX FORMED A DOJI. SO WE EXPECT TREND REVERSAL IN AUTO INDEX AND THE INDEX MAY COMMENCE ITS SHORT TERM UPTREND. THE POST IS FOR STUDY PURPOSE ALTERNATIVELY TRADERS CAN TAKE POSITIONS IN SELECT AUTO STOCKS TO CATCH THE MOMENTUM. 

BANK NIFTY OPTION STRATEGY

BANK NIFTY WITNESSED A SHARP CORRECTION RECENTLY PARTICULARLY DUE TO  HEAVY SELLING IN PSU BANKS. BANK NIFTY IS NOW HANGING AROUND ITS UPTREND LINE AND FINDING SUPPORT AROUND 11300 LEVEL ON A CLOSING BASIS. FURTHER ON INTRADAY BASIS IT IS FINDING SUPPORT AROUND 11000 LEVEL AND WITNESSING RECOVERY. CONSIDERING THESE FACTORS AS WELL AS MODERATE BULLISH INDICATORS WE ARE OF THE OPINION THAT BANK NIFTY MAY TRY TO KISS 11750-11800 LEVELS IN SESSIONS AHEAD. 

BUY BANK NIFTY 11800 JULY CE @ 138 SL 50 TGT 240-290

CNX MIDCAP 12513

CNX MIDCAP IS NOW FINDING RESISTANCE AROUND ITS UPTREND LINE i.e. AROUND 8050 LEVELS. CONSECUTIVE WEEKLY CLOSES ABOVE 8050 MARK WILL ADD GREAT FIRE AND THE INDEX SEEMS TO BE SET TO KISS 8800 MARK IN A MEDIUM SHORT TERM. 

CNX METAL 4513

METAL STOCK DIDN'T PARTICIPATE IN THE RECENT RALLY AND SO FAR THEY HAVE UNDER PERFORMED THE BROADER MARKETS. HOWEVER DURING RECENT PAST METAL INDEX FOUND GOOD SUPPORT IN 2110 ZONE AND WITNESSED BOUNCE BACK FROM THE SAID LEVEL. A MODERATE BULLISH CANDLE FOLLOWED BY COUPLE OF DOJIs AROUND SUPPORT AREA INDICATE A POSSIBILITY OF BOUNCE BACK. WITH OTHER INDICATORS TOO LOOKING POSITIVE WE EXPECT METAL INDEX MAY SHOW STRENGTH IN COMING WEEK AND METAL STOCKS MAY SHINE. MINOR HURDLE AROUND 2265 AREA WHICH ONCE CROSSED ON A CLOSING BASIS, THE PROBABILITY OF THE INDEX KISSING 2370-2400 MARK IN A NEAR FUTURE CANT BE RULED OUT. 

CNX PSU BANK 2413

THE INDEX HAVING TESTED CRUCIAL SUPPORT ZONE AROUND 2950 TODAY GAVE A VERY FIRM CLOSE ABOVE ITS IMMEDIATE RESISTANCE ZONE OF 3100. WE SENSE RSI IS SHOWING BULLISH FAILURE SWING WHICH IS A QUITE RELIABLE REVERSAL PATTERN. SO WE ARE NOW OF THE OPINION THAT PSU BANKS MAY CONTINUE TO SHOW STRENGTH IN NEAR TERM AND THE INDEX COULD KISS 3375 LEVELS.

BANK NIFTY: SERIOUS BREACH OF SUPPORTS

ON A DAILY CHART BANK NIFTY HAD A STRONG SUPPORT AROUND 11400 WHICH HAS NOW BEEN BROKEN AND IT HAS GIVEN A CLOSE BELOW THE GOLDEN RATIO i.e. 61.8% RETRACEMENT. ALTHOUGH BANK NIFTY SEEMS TO BE HIGHLY OVERSOLD ONE MUST AVOID BUYING AS THE MAJOR TREND SEEMS TO BE DOWN. A GAP AT 10660 IS STILL UNFILLED WHICH MIGHT ACT AS MAJOR SUPPORT FOR THE INDEX IN COMING DAYS AND THE SERIOUS BREACH OF THE SAID LEVEL MAY CREATE MORE PANIC IN BANKING STOCKS AND THE INDEX WE SENSE CAN TEST 9500 MARK. AT THIS STAGE THIS MIGHT SOUND UNREALSTIC TO MANY BUT WE SENSE THAT BANK NIFTY HAS BREACHED MAJOR SUPPORTS AT 11700- 11400 VERY CONVINCINGLY.

 

ON A WEEKLY CHART IT HAS FOUND SUPPORT AROUND 50 WEEKS EMA AND WEEKLY CLOSE BELOW 11180 MAY MAKE THINGS WORST. AGAIN WE REQUEST TO AVOID BUYING IN BANK NIFTY UNLESS AND UNTILL IT CLOSES ABOVE 11200 ON WEEKLY BASIS AND ON DAILY BASIS 2 OR MORE CLOSES ABOVE 11400 HAPPENS. WE ARE HIGHLY BEARISH ON THE INDEX PROVIDED IT TRADES BELOW 11200. 10660 IS THE LAST HOPE.

 

WOULD LIKE TO QUOTE ONE OF OUR FAVOURITE QUOTES FROM THE GURU DENNIS GARTMAN

"Markets can remain illogical longer than you or I can remain solvent,"


 

BELOW IS THE DAILY CHART.

 

 

WEEKLY CHART:

 

 

WEEKLY CHART WITH FIBONNACI TOOL