A TECHNICAL VIEW ON CNX--BANK NIFTY- 15.5.2020

CNX--BANK NIFTY

 Open-19197.70--High-19380.10--Low-19024.75—Close-19068.50 on 14.5.2020

Support:18941/18854/18300/18100/17840/17340/17248.42/17143.20/16946/16759/16587/16387/16193/16116.25.

 

Resistance: 19420/19565/19694.55/19765/19851/19870/19970//20010/20391/20586.22/21122.10/21348.15/21462.40.

  (Bold and underlined figures are most important)

It could not sustain yesterdays euphoric up move and opened today with a down gap at 19197.70 and made a high of 19380.10 and then moved down and made a low of 19024.75 and finally closed near the low of the day at 19068.50 with a loss of 566 points.

As mentioned in my earlier post that it was already weak technically and is in down correction mode so the yesterdays up move was just an overreaction of the economic package announcement and hence fizzled out abruptly. It is therefore suggested to avoid long trade completely till it moves above 20010 and sustain on the closing basis. It is strongly suggested to adopt sell on the rise strategy or sell on the price break down as of now. Moving down it has good support at 18854----18400----18300----18100. Please note that sustained break below 18100 will accelerate the fall. So short trade can be squared off in the range of 18300—18100 and can be initiated again below 18100.

 

TRADING STARTAGY      

1. Sell on the rise in the range of 19460----19650----19770---19850---20010---20100 with a stop loss of above 20200. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 20200 only.

Remark: - The long term trend is down. Yesterdays up move was almost reversed today, furthermore it is already weak technically, therefore long trade should be completely avoided till it moves above 20010 and sustain on the closing basis. Only short trade should be attempted on the rise or on the price break down as suggested above. 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.