A TECHNICAL VIEW ON CNX--BANK NIFTY- 14.5.2020

CNX--BANK NIFTY

 

Open-20017.75--High-20122.25--Low-19429.90—Close-19634.95 on 13.5.2020

 

Support:19626/19540/19400/19155.48/18863/18300/18100/17850/17340/17248.42/17143.20/16946/16759/16587/16387/16193/16116.25.

 

Resistance: 19694.55/19765/19851/19870/19970//20010/20391/20586.22/21122.10/21348.15/21462.40.

 

 (Bold and underlined figures are most important)

 After the announcement of economic stimulus package by the Honorable Prime Minister yesterday night, it opened with a huge up gap at 20017.75 and made a high of 20122.25 and then went down to make a low of 19429.90 and finally closed the day at 19634.95 up by 772.10 points. The gap it created today is still there and if it makes an effort to fill the gap in next 3-4 days which is technically possible then it can come down to 18993.40 levels.

In spite of good closing today it is still not showing required strength which can take it up further, therefore it seems that this up move may fizzle out in next 2-3 days, but sustained close above 20010 may take it higher which may please be noted. Please note that despite the robust up move today it is still sell on the rise bet or sell on the price break down. Therefore it is suggested to avoid long trade till it closes above 20010 and sustain.

Moving up it will face resistance at 19763---19851---19969---20010--20200-20391 and these could be the possible sell points also. Similarly moving down it may find support at 19626—19540---19419---19200---18863---18287---18100.

TRADING STARTAGY      

 

1. Sell on the rise in the range of 19770---19850---20010---20250 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.

 

Remark: - The long term trend is down. It gave a good up move today but not exhibiting enough strength therefore still short trade on the rise it a better option. Long trade can only be tried if it move above 20010 and sustain on the closing basis. The long term bias is hugely bearish as of now.    

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.