A TECHNICAL VIEW ON CNX--BANK NIFTY FOR- 2.7.2020

CNX--BANK NIFTY

Open-21354.10--High-22061.60--Low-21281.85—Close-21977.60 on 1.7.2020

 

Support: 21967/21807/21778/21462/21359/21026/20926/20642/20324/20201/20010/19507.

Resistance:22169/22418/22479.55/22996.40/23609.40/23822/23923.30/24045/24240.

 Critical Points moving up:--22169--22479.55---23100---23700.

Critical Points moving down:--21778--21359---21026---20926.

(Bold and underlined figures are most important)

It closed above its recent lower top of 21592.05 on the line chart, critical point of 21778 and intraday top of 21784.65 on the bar chart which is a good sign. Since it has been making lower top and bottom and crossed the recent lower top today thereby making higher top but it has to make a higher bottom also to confirm that the correction is over and up move may resume, therefore it has to hold its recent closing bottom of 21359 for up momentum to continue. It is showed some strength in today’s move and if it sustain above its critical point of 21778 on the closing basis then the up journey may continue. Looking at today’s move buy on decline strategy can be adopted. Please note that if it moves and sustain above 22418 on the closing basis then it is likely to hit much higher levels. 

In view of the above observation it seems that it may continue the up move subject to making a higher bottom, therefore long trade can be tried on decline but not below 21788 on the closing basis and in intraday basis can try near but not below 21359. Similarly short trade should also be attempted in the critical resistance range for taking advantage of the possible correction. 

I make it a point to mention in almost my all post that the upsurge in the entire world market is purely liquidity driven and completely defies fundamentals therefore it can end mischievously because there is a saying that money comes fast and it goes away even faster. So be vigilant and extra cautious in the long trade. Short trade should also be attempted at critical points to take advantage of correction or may be a possible rally breakdown.

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.

TRADING STRATEGY

1. Buy if it maintains above 22062 for some time with a stop loss of 21950.

Or

Buy on decline but not below 21778 with a stop loss of 21650.

Or

Buy on decline near but not below 21359 with a stop loss of 21200.

2. Sell on the rise in the range of near 22880----23200(S/L-23300).

Or

Sell if it maintains below 21778 for some time with a stop loss of 21900.

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.