A BROAD TECHNICAL VIEW ON CNX--BANK NIFTY FOR THE WEEK STARTING FROM- 4.5.2020

CNX--BANK NIFTY

Open-21589.20--High-21967--Low-21353.65—Close-21534.50 on 30-4-2020

Support:21462.40/21122.10/20907.55/20608/20575/20324/20184.10/20010/19988/19887/19586/19466.30/19409.35/19229/19144/19122.10/19051.95/18820/18703.45/18226/18162.53/17719/17606/17502/17350/17248.42/17143.20/16946/16759/16587/16193/16116.25.

Resistance:21967/22418/22469/22996.40/23611.10/23822/24048/24240/24353/24463.

 (Bold and underlined figures are most important)                                                                       

In the preceding week it gave reasonably well up move but it was a weak move in comparison with CNX-Nifty. However it decisively crossed its critical and important point of 20010 and ended the week at 21534.50. Technically it looks okay at this point of time so the ongoing rally may extend. But it is pertinent to mention here that this pullback rally is already 24 days old, furthermore is not that strong in comparison with Nifty, therefore it seems that it may definitely have entered the vulnerable zone where this rally could possibly exhaust or correct downward any time now before moving up again. Moving up it will face stiff resistance in the range of 21970---22418 but if it moves above 22418 and sustain on the closing basis then it will open the upside up to 24365 else it may possibly exhaust in the range of 21970---22418 provided it keeps closing below 22418 on sustained basis. Similarly going down it will find good support at 20608/20324/20010/19630/19430. It is important to mention here that sustained break below 20010 on the closing basis will further weaken this rally and sustained break below 19430 will signal breakdown and can take it down sharply which may be noted.

In view of the above observation it is suggested to avoid long trade for the time being, trying short trade at the appropriate points would be a better option as of now.

NOTE: - The upside benchmark point is 22418 and downside benchmark point is 20010 & 19430 on the closing basis.

TRADING STARTAGY      

1. Buy on decline but not below 20010 with a stop loss of below

    19800.

  Or

    Buy above 21970 with a stop loss of below 21750.

2. Sell on the rise in the range of 21970---22418 but not above 22418

     with a stop loss of above 22550.

Or

    Sell below 21460 with a stop loss of above 21650.

Or

    Sell below 19840 with a stop loss of above 20100.

  

Remark: - The long term trend is still down but the ongoing pullback rally is reasonably good, however since this rally has entered into a vulnerable zone therefore it could possibly exhaust or go in for deep downward correction any moment. It is therefore suggested to avoid long trade now or if initiated should be handled with extreme caution and care at this point of time. Short trade can be tried at specific point as mentioned above. The long term bias is 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.

Kindly note that make your cost your stop loss in favourable  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.

Note: Price stated here are of spot market.

Contact me for strategic guidance to enter and exit trade.