A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --17.7.2020

CNX--BANK NIFTY

Open-21453.25--High-21671.25--Low-21027.55—Close-21597.15 on 16.7.2020

Support:21512.29/21462.40/21357/21222.45/21027.55/20926.45/20316/20122.25/20010/19507.

Resistance:21768/21807.40/21967/22418--22480/22572.22..

Critical Points moving up: 21812---22054----22297----22480---22572.22—23080.60.

Critical Points moving down:-21512.29---21357---21027.55---20872--20350.

(Bold and underlined figures are most important)

It did break its double bottom of 21222.45 & 21230.55 intraday but as expected staged a pullback rally in the late afternoon on the closing basis clocking a gain of 256.40 points. It is just a relief rally and may fizzle out anytime soon, however as long as it holds 21512.29 levels on the closing basis it could  scale up to 21812---22054---22296---22480---22572.22 levels in this rally but this rally may potentially end at any of these points or earlier also. Break below 21512.29 on the closing basis will signal the end of the pullback rally for sure and sustained break below 21357 will accelerate the fall again, which may please be noted. Moving down it will find support at 21434---21357---21222---21027---20872 levels.

In view of the above observation, it is in corrective mode, but the pullback rally is on now, as you are aware that pullback rallies are treacherous in nature and can end abruptly also, therefore for safe traders it is suggested to avoid long trade till clarity on correction completion emerges, so they should look for short trade opportunity at higher levels or on the price breakdown for taking advantage of the down move because the trend is down for now. However aggressive day traders can try long trade if it maintains above 21512.29 else avoid 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 if it maintains above but not below 21512.29 for some time after opening with a stop loss of 21400. It is for the aggressive traders only, because it could be a risky trade.

 

1. Sell on the rise near or within the range of 21875--- 22150 with a stop loss of 22300.

Or

Sell if it moves and maintain below 21512 for some time with a stop loss of 21620. It could be a risky trade but worth trying.

Or

Sell if it moves and maintain below 21357 for some time with a stop loss of 21450.

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.