A TECHNICAL VIEW ON CNX--BANK NIFTY FOR- 8.5.2020

CNX--BANK NIFTY

Open-19536.05--High-19757.25--Low-19332.15—Close-19491.80 on 7.5.2020

Support:19271.75/19200.08/19051.95/18860/18703.45/18300/18100/17854/17340/17248.42/17143.20/16946/16759/16587/16193/16116.25.

Resistance:19655/19769/19847.65/19881/19934/20010/20220/20514.75/20586.22/21122.10/21348.15/21462.40.

 (Bold and underlined figures are most important)

It closed below its previous day’s close today i.e. at 19491.80; hence it has made a lower top at 19694.55 ,  but it is yet to break the recent bottom of 19271.75 , therefore a close below 19271.75 is required to confirm that it is making lower top & bottom and for down move to gather momentum. Please note that till it happens there is a reasonable possibility that it could start moving up again and if it closes above 19694.55 and then above 20010 and sustain then it may resume the up momentum again. The overall technical parameters are weak; therefore long trade should be avoided now and only be tried if it closes above 20010 and sustain. So, short trade on the rise and on price breakdown would be the best option as of now.

 Moving down it will find good support in the range of 18860--- 18703---18309---18100---17850---17286.40---17143. It is very important to mention here that it has been closing below its critical & important point of 20010 for last four days and if it sustain below it for few more days then it could retest or break its recent bottom of 16116.25 made on 24.3.2020 in coming days.

TRADING STARTAGY      

1. Sell on the rise in the range of 19850---20010---20300 with a stop    loss of above 20400. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 20400 only.

Or

Sell near but below 19850 with a stop loss of above 20010.

Remark: - The long term trend is down. It is almost confirmed that the pullback rally has exhausted and down move has begun but a close below 19271.75 is important as of now for the fall to accelerate. In view of the above observation long trade is a complete avoid till it closes above 20010 and sustain. Only short trade should be attempted as suggested 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.