A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --13.7.2020

CNX--BANK NIFTY

Open-22720.95--High-22835.20--Low-22320.05—Close-22398.45 on 10.7.2020

Support:21967/21807.40/21768/21462.40/21122.10/20926.45/20316/20122.25/20010/19507.

Resistance:22480/22572.22/22996.40/23080.60/23611.40/23822/23923.30/24045/24240

Critical Points moving up:--22480---22572—23200—23255—23650.

Critical Points moving down:--22257---22003---21745---20926.45.

(Bold and underlined figures are most important)

It had a very weak day today and it broke some of its key levels on the chart, which is a bad sign. It broke its recent bottom of 22584.65 on the line chart thereby making lower bottom and also broke its critical point of 22572.22 & 22479.55 decisively which indicates that it has slipped into correction mode and to prove it otherwise it has to bounce back above 22572.22 level and sustain on the closing basis in next 2-3 days else correction will deepen. Moving down it will find good support at 22257---22003---21749—21434—21357 levels and any of these could be the possible correction completion points also. But sustained break below 21357 on the closing basis can take it down to much lower, which may please be noted.   

In view of the above observation it look weak as of now ,therefore long trade should only be attempted if it moves and maintain above 22572.22  or after a reasonable decline near the points mentioned above or  if  it gives some visible sign of  correction completion at any point of time. Since it seems that it has slipped into correction mode, therefore short trade should be attempted in near the critical price or on the price breakdown for taking advantage of corrective move or a possible rally breakdown.     

Please be alert and vigilant particularly in long trade because the ongoing rally is purely liquidity driven and not backed by fundamentals, therefore possibility of ending this rally mischievously is pretty high. The bias is up as of now.        

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 only if it move and maintains above 22572.22 for some time with a stop loss of 22460. It could be a risky trade.

2. Sell on the rise near 22572.22 with a stop loss of 22650.

Or

Sell if it moves below 22320 for some time with a stop loss of 22410. It could be a risky trade but worth trying.

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.