TECHNICAL VIEW ON CNX--BANK NIFTY FOR THE WEEK STARTING FROM--22.6.2020.

CNX-Bank Nifty – Technical View

Period: 22 – 26 June 2020 |Author: Narendra Kumar Surana

    

Open - 20970.10,  High - 21467.65,  Low - 20878.25, Close - 21338.10

Key levels	L1	L2	L3	L4	L5	L6
Support	20995	20697	20530	20201	20010	19728
Resistance	21347	21467	21807	21967	22418	22920

Outlook

Technically the short term trend is up; therefore long trade can be initiated on decline and at other appropriate points too. But it is important to mention here that the ongoing up rally is not fundamentally backed and is purely liquidity driven so be vigilant because  it may end up abruptly also, therefore long trade should be handled with extreme caution and care. Since, this rally can culminate surprisingly, therefore it is suggested that short trade should also be attempted at critical points.

 

Trading Strategy

Trade	Trigger	Stop loss	Risk
Buy	If it moves above 21348 and sustain for some time.	21260	Could be risky but worth trying.
Buy	If it does not go below 20995in two hours of trade, buy near it	20930	Could be risky but worth trying.
Buy	On decline at appropriate points but not below 20530.	20450	Looks safe as of now.
Buy	If it maintains above21468 for some time.	21400	Slightly enthusiastic trade, could be highly risky but worth trying.
Sell	Critical points-21680—21970—22450---23100.	21750—22030---22520--23200	Contrarian trade therefore risky, but worth trying.
Sell	If it does not move above 21468 in first two hours of trade.	21520	Could be a risky trade, but worth trying.
Sell	If it maintains below 20530 for some time.	20620	Looks moderately safe.
Sell	If it maintains below 20201 for some time.	20300	Reasonably safe.
Sell	Definitely if it maintains below 19912 for some time.	20050	Extremely safe.

 

Detailed View

Further to my last post for 19.6.2020, as expected correction ended and up move began on 18.6.2020 itself as it crossed its lower top of 20296.70and made a higher bottom at 20201.75, thereby making higher top & bottom, furthermore it its well above its short term moving averages, which is a positive sign, so the short term trend is up and it is expected to move higher with in between down correction from time to time as long as it makes higher top & bottom. Therefore as of now it is buying on decline market technically. I once again reiterate that the ongoing rally in Indian and in the rest of the world markets are completely defying economic, fundamental and geopolitical conditions and are purely driven by liquidity; therefore chances are that it could end up abruptly also. Furthermore it is way below its long term moving averages thereby exhibiting far less strength in comparison with Nifty-50.  It is therefore suggested to try long trade as suggested above but with extreme caution and alert. Moving up it will face stiff resistance at 21680---21970---22418---23100---23500--23820, sustained close above 22418 will open the upside up to 24365 which may please be noted. Since this up rally is purely liquidity driven, so chances are that it may fizzle out without giving any proper signal , therefore short trade should also be attempted as suggested above .Moving down it will have support at 20995---20697---20530—20201—20010—19900--19500, sustained break below 20697 will indicate some weakness, break below 20201(this figure may change) will indicate that it could slip into  correction again and sustained break below 19500 as of now on the closing basis will indicate that it could go in for further deep correction. The short term bias is up as of now therefore one should be alert in short trade too.

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. However day squaring off is strongly recommended in any case.

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 favorable 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 | +91-9831313654 / 8240951127