A TECHNICAL VIEW ON CNX--BANK NIFTY FOR- 19.5.2020

CNX--BANK NIFTY

 

Open-18795.10--High-18795.10--Low-17514.20—Close-17573.20 on 18.5.2020

Support:17497/17380/17286.40/17248.42/17143/16635/16450/16193.25/16116.25/15850/15440/15162.

Resistance:18175/18287/18565.06/18703.45/18941/19051/19200/19350/19460/19585/19680/19825/19934/20010.

 (Bold and underlined figures are most important)

It opened on a flat to negative note today at 18795.10 and the open was high also for the day, then it plummeted and made a low of 17514.20 in the late afternoon and closed the day near the low at 17573.20 with a colossal loss of 1260.75 points.

 It has been showing extreme weakness for quite some time and today was no exception, it broke its first support range effortlessly and decisively, but it took support near its second range last point at 17400 (see my post of 18.5.2020) The fall was huge but since it took support on the second range last point, so it may stage a short up move from here before finally breaking this point. Moving down the support ranges for now is mentioned hereunder.

1. 17400----17286---17248----17143---sustained break below 17143 will accelerate the fall.

2. 16635---16450---16193----16116.

3. since it has been running far below its most critical point of 20010 for quite some time, therefore it is very likely that it could retest its bottom of 16116.25 made on 24.3.2020 in coming days/weeks. Furthermore if it sustain below 17248 then it will definitely break the bottom of 16116.25 and open the downside up to 13407 levels which may please be noted. So the bench mark point for now is 17248.

In case it gives move up it will face stiff resistance in the range mentioned hereunder.

1. 18175---18287---18565.06—sustained close above 18565.06 may take it little higher.

2. 18840----19215---sustained close above 19215 will give some strength for the up move.

The trend is down and in view of today’s huge down move, it is not likely to move up beyond the range of 18175---18565---18840 on the intraday basis in case of pullback rally, therefore any up move should be utilised for selling till it closes above its critical points of  18565.06. Therefore it is strongly advised to avoid long trade completely as of now.

TRADING STARTAGY      

1. Sell on the rise in the range of 18175---18287---18565---18840 with a stop loss of above 19200. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 19200 only.

 

Or

 Sell below 17248 with a stop loss of above 17425. This is a short

 stop loss and possibly it could be triggered one or two times, but  

 one has to initiate short position again below 17248 for the

 day.

Remark: - The long term trend is down. It looks extremely weak technically and there was a complete breakdown today, therefore long trade should be completely avoided and should be reviewed only if it closes above its critical point of 18565.06. It is suggested to adopt sell on the rise strategy or sell on the price breakdown as suggested above. The long term bias is hugely 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.