CNX--BANK NIFTY
Open-23159--High-23211.35--Low-22658.20—Close-22882.60
on 22.7.2020
Support:22695.92/22670.05/22479.55/22418/22377.06/22119.35/21967/21861/21807.40/21768/21512.29/21462.40./21357/21222.45/21027.55/20926.45/20316/20122.25/20010/19507.
Resistance:23080.60/23229/23234/23440/23605.60/23611.10/23822.20.
Critical Points moving up: 23080.60---23235---23440---23611.10---23822.20.
Critical Points moving down:-22695.92---22670.05—22479.55---21807.
(Bold and underlined figures are most important)
It opened with an up gap today but filled the gap during the day and closed with a gain of 100.60 points. It is important to mention here that the up gap it created on 20th & 21st July-2020 are still there and if makes an effort to fill those gaps in next 3-4 days which is technically possible, then it could come down to 22065 level. It has been rising for the last five days and above its recent critical point of 22695.92 & 22670.05(these figure can change) and if it holds these points on the closing basis then the up may continue with in between correction ,but sustained close below these points could push it for deep correction. Please note that it will gain tangible strength for good up move if it moves and maintain above 23320(it can change) on the closing basis.
In view of the above observation, long trade can be tried on decline but not below 22670 or try if it moves and maintains above 23080.60. Since it has been vertically moving for last 5 days therefore chances of short correction is also there, so short trade can also be attempted in the appropriate range or on the price breakdown for taking advantage of corrective move.
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 but
not below 22670 with a stop loss of 22600.
Or
Buy if it moves and maintains above 23080.60 for some time with
a stop loss of 22900.
2. Sell on the rise near or
within the range of 23320--23440 with a stop loss of 23560. It could be a risky
trade but worth trying.
Or
Sell if it moves and
maintain below 22657 for some time with a stop loss of 22750.
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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.