A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --28.7.2020

CNX--BANK NIFTY

Open-22664.80--High-22668.05--Low-21801.35—Close-21848.75 on 27.7.2020

Support:21807.40/21768/21512.29/21462.40./21357/21222.45/21027.55/20926.45/20316/20122.25/20010/19507.

Resistance:21861/21967/22119.35/22377.06/22418/22479.55/22670.05/22695.92/23080.60/23211.35.

Critical Points moving up: 22134.11--- 22377---22479.55---22695.92---23080.60---23211.35.

Critical Points moving down:-21542.77---21464.15---21027.85.

(Bold and underlined figures are most important)

As mentioned in my post for 27.7.2020 that it has slipped into correction mode on 24^th July -2020 as it closed below its most critical point of 22696 & 22670 and the correction may continue for some time. It continued the down move today also and finally closed near the low of the day with a colossal loss of 813.30 points. Today’s fall indicate that further fall is ahead and moving down it will find support at 21542---21464 levels. It may take support at any of these levels and can bounce back, but sustained break below 21464 can take it down to 21027 or may be much lower levels which may please be noted.

In view of the above observation, correction is on therefore long trade should be avoided till it gives visible indication of correction completion.  It is therefore suggested to adopt sell on the rise strategy or sell on the price breakdown till the ongoing correction subside.

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 22280---22430 with a stop loss of 22530. It could be a risky trade but worth trying.

Or

Sell if it maintain below 21800 with a stop loss of 21930.

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.