A TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 2.6.2020

CNX--BANK NIFTY

Open-19728.90--High-20225.35--Low-19632.90—Close-19959.10 on 1.6.2020

Support:19887/19728.90/19586/19515/19455.55/19358.05/19051/19010/18941/18703.45/18252.43/18100/17938/17719/17606/17311.25/17286.40/17248.48/17143/17105/16826/16450/16193/16116.25/15879.55/15626/15440/15157/14853.

Resistance:19998/20010/20109.71/20225.35/20514.75/20820/20995/21122.10/21348.15/21462.40/21670/21967/22380/22418.

 (Bold and underlined figures are most important)

It opened with a huge up gap at 19728.90 and made a low of 19632.90 and then moved up steadily and made a high of 20225.35 and ended the day at 19959.90 with a good gain of 662.35 points. It looks good but note that the gap it created today is still there and if it makes an effort to fill this gap in next 3-4 trading session which is technically possible then it can come down 19358.05.

It is showing reasonable strength but despite moving above its benchmark point of 20010(see my post for 1.6.2020) it closed below it, therefore as long as it does not close above 20010 long trade should not be attempted near this mark but can be tried on decline as of now with extreme caution and care because this is a relief rally in the long term downtrend and may fizzle out any time  without giving a signal, therefore short trade  should also be tried at the appropriate points with short stop losses.

 TRADING STRATEGY 

1. Buy on decline at appropriate points but not below 19455 with a stop loss of below 19320.

2. Can try selling in the critical range of 20255---470 with a stop loss of 20520. Please note that if your stop loss is not triggered and if it gives an indication of closing above 20010 then square your short position in any case. 

IMPORTANT NOTE: - The benchmark point now is 20010 and if it moves above it on the closing basis and sustain then it will open up bigger upside up to 22418.

Remark: - The long term trend is down. Short term trend is up and it is giving strong up moves but long trade can be tried either on decline or if it closes above 20010 only this would be relatively safe trade. Short trade should also be attempted as suggested above. The short term bias is up, which may not last long. 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.