A TECHNICAL VIEW ON CNX--BANK NIFTY FOR THE WEEK STARTING FROM-- 29.6.2020

CNX--BANK NIFTY

 

Open-21735.05--High-21784.65--Low-21320.10—Close-21592.05 on 29.6.2020

 

Support:21467.65/21426/21344/21122/20993/20926/20642/20324/20201/20010/19507.

Resistance:21778/21807.40/21967/22380/22418/22469/22996.40/23609.40/23822/23923.30/24045/24240.

Critical Points moving up:--21778—22265—22480—22870--23320.

Critical Points moving down:--21426---20926---20608---20201---20010.

(Bold and underlined figures are most important)

It exhibited huge volatility during the preceding week and it is likely to continue this week also. It is making higher top & bottom so looks good for further up move but it is well below its critical point of 21778 and if it remains below it then it may give jitters however as long as it holds its recent bottom of 21426.80 on the closing basis and intraday bottom of 20926.45 chances of moving up still remains. But for safe traders it is suggested to avoid long trade below 21788 in any case. To regain good strength in the up move it has to move and close above its recent top of 22265 and then hold its critical point of 21778 or at least recent bottom of 21426.80 on decline else it can end the present up move abruptly also. Therefore it seems that it is in a critical zone now from where it can move either way but the tilt is in favor of up move as of now.

In view of the above observation it seems prudent to avoid long trade on decline now because then it will be making a lower top which will be a weak signal for the up move to continue, however if it does not break the bottom of 21426.80 on the closing basis then long trade can be tried the next day if it starts to move up with a stop loss of 21300. Similarly if it closes below 21426.80 then it will make a lower top and will be in the process of making lower bottom so the ongoing up move may end. I would therefore suggest that attempting long trade below 21788 could be a risky affair.

I make it a point to mention in my all post that the upsurge for some time in the entire world market is purely liquidity driven and completely defies fundamentals, therefore it can end mischievously because there is a saying that money comes fast and it goes away even faster. So be vigilant and extra cautious in the long trade. Short trade should also be attempted at critical points to take advantage of correction or may be a possible rally breakdown. The bias is up now.

NOTE: - If it opens up with huge gap up then wait for it to settle down before initiating long position, but short trade can be attempted on huge gap up if it is near the selling point and vice versa . Since, it is showing volatility so any type of trade should be squared off during the day, if you don’t have reasonable profit margin in the trade. Day squaring off is strongly suggested in any case.

TRADING STRATAGY

1. Buy if it maintain above 21593 for some time with a stop loss of 21400.It could be a highly risk trade risky trade.

2. Sell on the rise near 22900—23100(S/L-23200).

Or

Sell if it maintains below 21336.35 for some time with a stop loss of 21450.

Or

Sell if it maintains below 20926 for some time with a stop loss of 21030.

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 favorable  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.

 

Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.