A TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 3.6.2020

CNX--BANK NIFTY

Open-20120.60--High-20615.75--Low-19852.55—Close-20530.20 on 2.6.2020

 

Support:20332/20109.71/20010/19852/19728.90/19586/19515/19455.55/19358.05/19051/19010/18941/18703.45/18252.43/18100/17938/17719/17606/17311.25/17286.40/17248.48/17143/17105/16826/16450/16193/16116.25/15879.55/15626/15440/15157/14853.

 

Resistance:20820/20995/21122.10/21348.15/21462.40/21670/21967/22380/22418.

 (Bold and underlined figures are most important)

It is exhibiting good strength as it has closed way above its benchmark point of 20010 today, so it has opened the upside up to 22418 till it hold above this mark on the closing basis. Although it looks good on the short term technical parameters for further up move. But please note that it has been vertically moving up from the level of 17278 and in last six trading sessions it has scaled up by more than 3300 points, the vertical rise is not good for steady market and that too for a relief rally because when it corrects it may have vertical fall too. It seems that with this kind of rise for a pullback rally, it has entered into highly vulnerable zone where correction looks imminent.

Short term trend is up but since it has had vertical rise, so for safe trader it is suggested to avoid long trade for today but aggressive trader can still try long trade as suggested below. Please note that the price movement does not suggest instinctive short trade but since the ongoing up move is supposedly a pullback rally which generally ends abruptly therefore short trade should be tried at the critical range for sure with strict stop loss.     

TRADING STRATEGY 

1. Buy on decline at appropriate points but not below 20330 with a stop loss of 20200.

Or

Buy if it maintains above 20531 with a stop loss of below 20330.

2. Can try selling in the range of 21150---21460 with a stop loss of 21530.

Or

Sell if it maintain below 20330 for some time with a stop loss of above 20535.

Remark: - The long term trend is down. Short term trend is up and from here it may inch up further also but correction looks imminent, so safe trader should avoid long trade today but aggressive trader can try it as suggested above. 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.