A TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 28.5.2020

CNX--BANK NIFTY

Open-17603.40--High-18874.25--Low-17560.35—Close-18710.55 on 27.5.2020

 

Support:18470/18287/18252.43/18100/17938/17719.55/17606/17537.65/17286.40/17248.48/17143/17105/16826/16450/16193/16116.25/15879.55/15626/15440/15157/14853.

Resistance:18795.10/18941/18962.28/19010.53/19051/19320/19400/19536/19769/19881/19934/20010/20260/20514.75/20586.22/21122.10/21348.15/21462.40.

 (Bold and underlined figures are most important)

It was resting on its support range of 17320---17105 and was moving in a short range but today it unexpectedly gave a robust up move registering a huge gain of 1270.20 points. It has closed way above its critical points of 18100 & 18252.43, above some of its short term moving averages on the daily chart and given breakout from the short term down trend line which is a bullish sign. It exhibited tremendous strength and if it could hold on to the momentum it showed today it could definitely move higher. Please note that close above 18252.43 has opened the upside up to 18965 and close above this can open the upside up to 19536—19732 but on the way up to this range it will face stiff resistance at 19010---19150---19225---19320---19400 so up journey may not be smooth.

However in view of today’s up move one should be extra careful in short trade and should not try it frequently as of now but it should definitely be attempted at the specific points with strict stop losses because it is a pullback rally and can take about turn   any time. Long trade can be tried on decline but with extreme caution and care.   

TRADING STRATEGY      

 

1. Buy on decline but not below 18250 with a stop loss of 

    18000.

Or

    Buy if it maintain above 18795 for some time with a stop loss of

    18650.

   

2. Try selling if it does not cross 18795 even in intraday in first two hours of trade with a stop loss of above 18980.

Or

 Sell if it maintains below 18100 for some time with a stop loss of

 18280.

Or

Sell near or within the range of 19540---19740 with a stop loss of

19860.

Remark: - The long term trend is down. But if it could maintain today’s up momentum and sustain above its critical points on the closing basis then it could move higher. So exercise caution in short trade now but it should be tried as suggested above. Long trade should be tried as suggested above but with caution. 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.