A TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 4.6.2020

CNX--BANK NIFTY

Open-20966.60--High-21619.55--Low-20822—Close-20940.70 on 2.6.2020

 

Support:20907.55/20820/20680/20530.45/20324/20184.10/20122.25/20010/19852/19728.90/19586/19515/19455.55/19358.05/19051/19010/18941/18703.45/18252.43/18100/17938/17719/17606/17311.25/17286.40/17248.48/17143/17105/16826/16450/16193/16116.25/15879.55/15626/15440/15157/14853.

 

Resistance:20995/21122.10/21348.15/21462.40/21619.55/21670/21967/22380/22418.

 

 (Bold and underlined figures are most important)

It opened up with a huge up gap at 20966.60 and went up further and made a high of 21619.55 than in the late afternoon it went down and made a low of 20822 and ended the day near the low at 20940.70. It closed on a weak note from the daily price movement perspective, so correction may set in. 

Although it is still looking good on the chart for further up move but today’s price setup is slightly concerning, secondly the up gap it created today and on 1.6.2020 is still there and if it makes an effort to fill the gap in next 3-4 days, which is technically possible then it can come down to 20615.75 & 19358 levels, furthermore it has been vertically moving up and today was the seventh day of rise in a row so if it corrects from here then it may have vertical fall too.

In view of the above observation and looking at today’s price pattern correction looks imminent and can happen any time soon. It is therefore suggested to avoid long trade at this juncture and wait for a reasonable correction to try long trade. So, short trade should be a better strategy for the day if price pattern permits.

TRADING STRATEGY 

1. Avoid long trade today.

2. Sell on the rise near or within the range of 21500----21700 with a stop loss of 21800.

Or

Sell if it maintain below 21125 with a stop loss of  21220.

Or

Sell below if it maintain below 20820 with a stop loss of  20970.

Remark: - The long term trend is down. Short term trend is up but correction looks imminent therefore long trade should be completely avoided for the day. Short trade should definitely 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.