A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --14.7.2020

CNX--BANK NIFTY

Open-22613.25--High-22657.40--Low-21981.65—Close-22089.25 on 13.7.2020

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

Resistance:22418--22480/22572.22/22996.40/23080.60/23611.40/23822.

Critical Points moving up:--22257.71---22418---22480---22572.22—23080.60.

Critical Points moving down:--22003---21749---21357---20926.45.

(Bold and underlined figures are most important)

It opened on a positive note at 22613.25 and made an intraday high of 22657.40 and thereafter lost the momentum and plunged down sharply and made a low of 21981.65 and finally ended the day near the low at 22089.25 with a loss of 309.19 points. Although it went past its critical point of 22479.55 & 22572.22 intraday but could not sustain above it on the closing basis and closed way below these points which indicates gross weakness in it, therefore it seems that the down move could further deepen. Moving down it will find good support at 22003---21749---21434--21357 levels and any of these could be the possible correction completion points also, but break below 21357 on the closing basis can take it down further, which may please be noted. 

In view of the above observation, it is in correction mode now therefore long trade should be avoided till it gives visible indication of correction completion near the possible support points mentioned above or try long trade only after if it moves above 22572.22 and sustain on the closing basis as of now. Since the correction is on therefore short trade should be attempted on the rise in the critical range or on the price breakdown for taking advantage of corrective move or a possible rally breakdown advantage.   

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.  

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. Sell on the rise near or within the range of 22480--- 22572---22650 with a stop loss of 22750.

Or

Sell if it moves and maintain below 22040 for some time with a stop loss of 22180. 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.