A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --27.7.2020

CNX--BANK NIFTY

Open-22853.20--High-22854.05--Low-22417.20—Close-22662.05 on 24.7.2020

Support: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:22670.05/22695.92/23080.60/23211.35/23229/23234/23440/23605.60/23611.10/23822.20.

Critical Points moving up: 22695.92---23080.60---23235---23440---23611.10---23822.20.

Critical Points moving down:-22479.55---22377---22119---21861.

(Bold and underlined figures are most important)

It clocked a gain of 695.25 points on the weekly basis, but closed with a loss of 421.85 points today. Furthermore it has closed below its critical and important points of 22696 & 22670 (these figure can change) as of now and if it sustain below these points on the closing basis then it could reasonably correct from here. Moving down it will it will find support at 22479.55---22377---22119---21861---21543---21464 and any these support levels could be  correction completion points also, but sustained break below 21464 can take it down much deeper. Please note that it could resume the up move only if it moves and sustain above 22696 & 22670 on the closing basis else it could be in corrective mode for some time. It is therefore suggested to try long trade if it sustain above 22696 & 22670 levels or on decline at support levels mentioned above but only if it gives an indication of correction completion and start moving up. It is important to mention here that it will gain some strength for strong up momentum if it moves and sustain above 23250(this figure can change) on the closing basis.

In view of the above observation, long trade can be tried as suggested above but it would relatively safe to try long trades above 22696 & 22670 only. Please note that if it does not move above these levels then it could further correct, therefore 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 if it moves and maintains above 22696 for some time with a stop loss of 22900.

Or

Buy on decline near but not below 22200 with a stop loss of 22080.

2. Sell on the rise near 23250 with a stop loss of 23360. It could be a risky trade but worth trying.

Or

Sell if it maintain below 22662 for reasonable 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

suranank@gmail.com

Mobile—8240951127/9831313654.