TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 18.6.2020

CNX--BANK NIFTY

Open-20137.45--High-20627.90--Low-19978.15—Close-20201.75 on 7.6.2020

 

Support:20122.10/20010/19852/19728.90/19586/19526.10/19515/19455.55/19358.05/19297.25/19051/19010/18941/18703.45/18252.43/18100.

 

Resistance:20324/20530.45/20697.63/20820/20995/21122.10/21348.15/21462.40/21619.55.

 

Critical Points:--20010---20530.45----20697.63---20820---20995.

 (Bold and underlined figures are most important)

It opened on a negative note at 20137.45 and made a high of 20627.90 then slipped down  and made a low of 19978.15 and ended the day at 20201.75 with a loss of 94.95 points. The important thing is that it closed well below its critical points except for 20010 and made another lower top at 20296.70 today, which is a weak sign. Therefore long trade seems a risky affair till it closes above some of its critical points and sustains or starts making higher top and bottom. It is terribly weak on the chart, so selling on the rise at appropriate points would be a better strategy now till it fulfils any buying criteria.

Please note that the other observation, views and trading strategy in my post for the week starting from 15.6.2020 is valid for 18.6.2020 also. Except for one buying condition that it has made lower top at 20296.70 today so wait for long trade till it closes above 20296.70 and then buy on decline at appropriate points with self defined short stop losses with the help of above mentioned support levels but not below 19912 with a stop loss of 19800 as of now, but aggressive trader can  try buying if it sustains above 20296.70 for reasonable period of time with a stop loss of 20170.But it could be a risky trade mind you. Therefore it would be relatively safe to try long trade only if it closes above its lower top of 20296.70 and crosses its most critical point of 20697.63 on the closing basis. Sell trade should also be tried if it sustain below 19978 for some time with a stop loss of 20100.  

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.