A TECHNICAL VIEW ON CNX--BANK NIFTY- 6.5.2020

CNX--BANK NIFTY

Open-20147.30--High-20223.15--Low-19212.35—Close-19271.75 on 5.5.2020

Support:19200.08/19051.95/18858/18703.45/18312/18100/17859/17340/17248.42/17143.20/16946/16759/16587/16193/16116.25.

Resistance:19695/19847.65/20010/20191.92/20514.75/20586.22/21122.10/21348.15/21462.40.

 (Bold and underlined figures are most important)                                                                       

After yesterdays huge fall of almost 1800 points it fell today also by 472 points and closed near the low of the day at 19271.75. It is exhibiting tremendous weakness as it has broken its short, medium and long term moving averages decisively on the daily and weekly chart both, furthermore it also broke its recent bottom of 19586.65 & 19409.35 on the line chart. Therefore it seems that the pullback rally top is already in place at 21967 and now the down move should intensify further. Therefore it is suggested to avoid long trade completely till it closes above its critical point of 20010 and sustain on the closing basis for few days. It is strongly suggested to attempt short trade on the rise at appropriate points as of now.

Moving down it will find good support in the range of 18703---18312---18100---17850---17286.40. It is very important to mention here that it has been giving whip saw around its critical level of 20010 but closed below it for last two days and if it sustain below it for another 3-4 days then it could retest or break its recent bottom of 16116.25 made on 24.3.2020 in coming days. It seems very likely to happen at this point of time.

 TRADING STARTAGY      

1. Sell on the rise in the range of 19850---20010---20270 with a stop    loss of above 20590. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 20590 only.

Or

Sell below 19850 with a stop loss of above 20010.

Or

Sell below 19200 with a stop loss of above 19320

Remark: - The long term trend is down. It is almost confirmed that the pullback rally has exhausted and the down move should accelerate now. Therefore long trade is a complete avoid till it closes above 20010 and sustain for few days. Only short trade should be attempted now 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.