TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 19.6.2020

CNX--BANK NIFTY

Open-20137.--High-21028.35--Low-20030.35—Close-20956.30 on 18.6.2020

Support:20820/20697.63/20530.45/20324/20201/20122.10/20010/19852/19728.90/19586/19526.10/19515/19455.55/19358.05/19297.25/19051/19010/18941/18703.45/18252.43/18100.

Resistance:20995/21122.10/21348.15/21462.40/21807.40/21967/22418.

 Critical Points:--20010—20201--20530.45--20697.63--20820--20995.

 (Bold and underlined figures are most important)

 It crossed its recent top of 20296.70 so it is in the process of making a higher top and it has already made higher bottom at 20201.75 today and closed above most of its critical points except for one at 20995, furthermore it also moved above its short term moving averages, which is good sign, therefore it has turned into buy on decline market as of now. It is important to mention here that geopolitical and economic conditions and other related fundamentals are not supporting this rise and it is purely a liquidity driven rally, therefore long trade should be handled with extreme care and caution because this up move can end abruptly also. Moving up it will face resistance at 21462—21680--21807—21967--22418. Since, this rally is not fundamentally backed so short trade should also be attempted at appropriate points. The short term bias technically is slightly in favour of long trade now, but it is showing far less strength in comparison with CNX-Nifty therefore be extra vigilant in long trade.

 TRADING STRATEGY

1. Buy on decline at appropriate points but not below 20300 with a stop loss of 20180. The critical points mentioned above could be buying point also with a self defined short stop losses.

Or

   Buy if it moves above 20995 and maintain for some time with a stop loss of 20880.

2. Sell on the rise near or within the range of 21500-21750(S/L-21800)-21970-22450(S/L-22520).

Or

Sell if it maintains below 9880 for some time with a stop loss of above 9970.

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. Squaring off is strongly suggested.

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.