TECHNICAL VIEW ON CNX--BANK NIFTY FOR-- 26.6.2020

CNX--BANK NIFTY

Open-21218.--High-21703.50--Low-20926.45—Close-21506.15 on 25.6.2020

 

Support:21462/21344/21122/20993/20820/20642/20530.45/20324/20201.75/20122.10/20010.

 

Resistance: 21778/22418/22997/23611.

 

Critical Points moving up:--21778---22418—23600---24365.

 

Critical Points moving down:-21462/21344---20993---20642---20530—20201.

 

(Bold and underlined figures are most important)

 

It started correction on 24.6.2020 and today also it went down breaking 2^nd support point of 20993(see my post for 25.6.2020) but bounced back above it in the afternoon to close on a positive note, thereby making higher bottom at 21426.80 which is a good sign. But it is well below its most critical point of 21778, so if it does not move above it and sustain on the closing basis then it could still go down despite making the higher bottom. Therefore for safe traders it is suggested to try long trade if it moves and maintain above 21778 on the closing basis, however aggressive trader can try long trade if it maintains above 21510 & 21778 levels intraday but it could be a risky trade mind you.

It is needless to mention here that the ongoing uptrend is purely liquidity driven and lacks fundamentals completely therefore this up move may culminate surprisingly also, so be vigilant and extra cautious in the long trade. Short trade should also be attempted at critical points or on severe price breakdown to take advantage of the correction.

 

TRADING STRATEGY

1. Buy, if it maintains above 21510 for some time with a stop loss of 21390. It could be a highly risky trade, but worth trying.

Or

Buy if it moves and sustain above 21778 for reasonable time period with a stop loss of 21700.

2. Sell if it maintains below 21426 for some time with a stop loss of 21520.

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.