A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --8.7.2020

CNX--BANK NIFTY

 

Open-22254.30--High-22674.50--Low-22040.35—Close-22628 on 7.7.2020

Support:22480/22262/22169/21967/21926/21807.40/21462.40/21122.10/20926.45/20316/20122.25/20010/19507.

Resistance:22996.40/23611.40/23822/23923.30/24045/24240.

Critical Points moving up:--22844—22950—23255--23750.

Critical Points moving down:--22480---22169---21926---20926.45.

(Bold and underlined figures are most important)

It has crossed its recent major hurdle of 22480 today and closed reasonably above it which is good sign for the up move to continue. Apart from this moving down it has three critical points at 22262---22169---21852 (it can change also depending on the price movement) as of now. Please note that sustained break below 22262 & 22169 on the closing basis will signal that it could correct and break below 21852 will confirm that it has slipped into correction.

The trend is up as of now, therefore long trade can be tried on decline but not below 22169, but it would be relatively safe to try long trade above 22480 only.

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. So be vigilant and extra cautious in the long trade.

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 on decline if it maintain above 22480 with a stop loss of 22380.

Or

Buy on decline if it holds 22169 for some time with a stop loss of 22000. It could be a risky trade.

2. Sell on the rise near 23000—23255(S/L-23350).

Or

Sell if it maintains below 21850 for some time with a stop loss of 21940.

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.