CNX--BANK NIFTY
Open-20932.35--High-21141.80--Low-20316.20—Close-20390.45 on
4.6.2020
Support: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:20530.45/20554.11/20820/20995/21122.10/21348.15/21462.40/21619.55/21670/21967/22380/22418.
(Bold and
underlined figures are most important)
It opened up on a flat note at 20932.35 and made a high of 21141.80 and then slipped down steadily and made a low of 20316.20 and ended the day near the lower band at 20390.45 with a loss of 550.25 points. It completely lacked strength today. Furthermore it is terribly weak technically in comparison with CNX-Nifty. Please note that it has filled the gap it created yesterday but the gap of 1.6.2020 is still there (see my post for 4.6.2020) so chances of it coming down to 19358 levels in next 2-3 days cannot be ruled out.
As
envisaged it corrected today but as it is well above its benchmark point of
20010 for the last three days, so the upside up to 22418 is open(see my earlier
post) as long as it sustain above this benchmark point on the closing basis.
But moving up it has two more critical points at 20530.45 & 20554.11 and
host of other resistance points too at regular intervals therefore up journey
may not be smooth and will face huge hurdle.
In view of the above observation the short term
bias is still up but today’s move was disturbing so further downside from here
cannot be ruled out. It is therefore suggested to avoid long trade till it moves
above its critical points of 20530.45 & 20554.11 and sustain for some time,
however buy on decline can be tried but with extreme caution and care because
it has moved up vertically by more than 4500 points Intraday in just seven days
of trading and going down it may end the rally abruptly also therefore extreme caution is required. Similarly
instinctive short trade should be avoided but it should definitely be tried at
critical juncture or on price breakdown.
TRADING STRATEGY
1. Buy on decline near but not below 20010 with a stop loss of 19900.
Or
Buy if it
maintains above 20555 for some time with a stop loss of 20380.
2. Sell on the rise near or within the range of 20960---21300
with a stop loss of 21400.
Or
Sell
if it maintains below 20530 for some time with a stop loss of 20680.
Remark: - The long term trend is down. Short term trend is up but today’s down move was concerning therefore long trade should be avoided by the safe trades for the day, but aggressive trader can try as suggested above. Short trade should definitely be attempted as suggested above. The short term bias is up, but 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.
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Thank you for sharing your views.