A TECHNICAL VIEW ON CNX--BANK NIFTY FOR- 20.5.2020

CNX--BANK NIFTY

Open-18037.15--High-18175.30--Low-17390.65—Close-17486.25 on 19.5.2020

Support:17390/17380/17286.40/17248.42/17143/16635/16450/16193.25/16116.25/15850/15440/15162.

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 very strong note  at 18037.15 and made a high of 18175.30 but could not sustain at the higher level and move down sharply to make a low of 17390.65 and finally ended the day near the low at 17486.25 with a loss of 86.94 points. It did give an up move as envisaged in my post for 19.5.2020 but it lacked strength completely.

After yesterdays huge fall, it was a very weak intraday pullback move which it could not sustain and registered fresh losses, which indicated gross weakness in it. However in case  it makes an effort to give another shot for the up move then close above 18470.67 is required to indicate that it can  inch up further, but  looking at today’s movement it is less likely to happen. So one should think of long trade only if it moves above 18470.67 and sustain on the closing basis. Moving down the support ranges for now is mentioned hereunder.

1. 17390----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 view of the above observation the upside seems to be capped now in the range of 18175-----18470----18840. The trend is down therefore I once again reiterate that long trade should be completely avoided as of now. Therefore any rise in it should be utilised for selling till it closes above 18470.67 and sustain. 

TRADING STARTAGY      

1. Sell on the rise in the range of 18175---18287---18475---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 17390 with a short stop loss of above 17500.

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. Today’s up rally was terribly weak; therefore long trade should be completely avoided for now and be reviewed only if it closes above 18470.67. Only short trade should be attempted 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.