A TECHNICAL VIEW ON CNX--BANK NIFTY- 7.5.2020

CNX--BANK NIFTY

Open-19302.45--High-19806.60--Low-18941—Close-19694.55 on 6.5.2020

Support:19586/19200.08/19051.95/18864/18703.45/18309/18100/17854/17340/17248.42/17143.20/16946/16759/16587/16193/16116.25.

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

 (Bold and underlined figures are most important)   

 It opened on a flat to positive note today at 19302.45 and went down to make a low of 18941 then it bounced back and made a high of 19806.60 and closed above the previous day’s close at 19694.55.

                                                                   

 It is on an extreme weak footing technically, as it is well below its short, medium and long term moving averages on the daily and weekly chart; furthermore it has broken its previous bottom of 19586.65 & 19409.35 on the line chart and bottom of 19051.95 on the bar chart. So it seems that the pullback rally top is almost confirmed at 21967 but to accelerate the fall it needs to close below 19271.75 as of now. Short term bias is also bearish therefore long trade should be completely avoided and sell on the rise strategy should be adopted.

Moving down it will find good support in the range of 18864--- 18703---18309---18100---17850---17286.40---17143. 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 three days and if it sustain below it for another 2-3 days then it could retest or break its recent bottom of 16116.25 made on 24.3.2020 in coming days. Similarly a sustained close above 20010 for few days would show some strength for up move else it is terribly weak.  

TRADING STARTAGY      

1. Sell on the rise in the range of 19850---20010---20300 with a stop    loss of above 20450. Kindly note that the self defined stop losses can be applied by the traders but the authentic stop loss would be 20450 only.

Or

Sell 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 to accelerate the fall. 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.