TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 24.6.2020

CNX--BANK NIFTY

Open-21859.25.--High-22322.30--Low-21647.80—Close-22264.90 on 23.6.2020

Support:21967/21807/21462/21122/20995/20820/20697.63/20530.45/20324/20201.75/20122.10/20010.

Resistance: 22418/22997/23611.

Critical Points moving up:--22418—23600---24365.Sustained close above 22418 will open the upside up to 24365 marks.

Critical Points moving down:-21467.65—21347.45---20995---20530

 (Bold and underlined figures are most important)

 After making higher bottom of 20201.75 on 17.6.2020, it has been moving up vertically since and hit a high of 22322.30 today, so it has shot up by more than 2100 points in 4 days, which exhibits tremendous strength but please note that the vertical rise may have vertical fall too if it corrects and in between corrections are bound to happen in the uptrend. Therefore be alert for correction, it can set in any time but long trade should be initiated on decline and as of now the key buying points are 21348—20995---20201 for the ongoing week as of now. Please note that sustained break below 21348 can drag it down to 20995 and sustained break below it will indicate that the top is in place, break and close below 20201.75 will signal the end of this up move. It is therefore suggested to avoid long trade below 20995 as of now.

In view of the above observation, for safe trader it is suggested to avoid long trade today and wait for the possible correction on the end of the day basis and then plan to initiate long trade the next day if price favour. However aggressive trader can try long trade on intraday correction as suggested below.

It is needless to mention here that the ongoing uptrend is purely liquidity driven and lacks fundamentals completely therefore it can culminate surprisingly and can trap the traders at higher levels, so be vigilant and extra cautious in the long trade. Short trade should also be attempted at critical points to take advantage of the possible correction.

 

TRADING STRATEGY

1. Buy on decline near if it holds 21348 intraday with a stop loss of 21250.It could be a risky trade.

Or

   Buy on decline near if it holds 20995 intraday with a stop loss of 20800. It could be a risky trade.

2. Sell on the rise near or within the range of -23100--23450(S/L-23600).

Contrarian trade, therefore risky, but worth trying.

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. Day squaring off is strongly suggested 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 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.