A TECHNICAL VIEW ON CNX--BANK NIFTY FOR- 30.6.2020

CNX--BANK NIFTY

Open-21291.55--High-21440.05--Low-21026.45—Close-21359 on 29.6.2020

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

Resistance:21426/21467.65/21592.05/21778/21807.40/21967/22380/22418/22469/22996.40/23609.40/23822/23923.30/24045/24240.

Critical Points moving up:--21592---21778—22265.

Critical Points moving down:--21344--20993---20926---20642---20201---20010.

(Bold and underlined figures are most important)

It has made lower top of 21592.05 and broken recent bottom of 21426.80 today on the closing basis, thereby started making lower top and bottom on the line chart, which is weak sign and indicate that the ongoing up move may have ended. But it did not break the intraday bottom of 20926.45 on the bar chart, therefore still there is a possibility that if it could closes above its recent top of 21592.05 and finally above its critical point of 21778 & intraday top of 21784.65 in next 3-4 days then this up move may regain momentum again else the ongoing up rally is over for the time being and correction may accelerate.

In view of the above observation, it gives an indication that the up move is threatened therefore avoid long trade till clarity emerges or it closes above its recent top of 21592.05, but it will pick up momentum and gain some strength only if it moves and sustain above 21778 & 21784.65 on the closing basis. It is therefore suggested to try long trade above 21778 or after a reasonable or substantial decline at the proper points where correction completion is visible. Since it started making lower top & bottom short trade is suggested at appropriate points or on the price breakdown because correction could deepen if it does not move above the aforesaid points.

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. Sell on the rise near 21592(S/L-21650).

Or

Sell if it maintains below 21291.55 for some time with a stop loss of 21380.

Or

Sell if it maintains below 20926 for some time with a stop loss of 21040.

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.

 

Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.