A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --29.7.2020

CNX--BANK NIFTY

Open-21940.15--High-22233--Low-21611.40—Close-22105.20 on 28.7.2020

Support:21989/21967/21861/21807.40/21768/21512.29/21462.40./21357/21222.45/21027.55/20926.45/20316/20122.25/20010/19507.

Resistance:22119.35/22222.58/22377.06/22418/22479.55/22670.05/22695.92/23080.60/23211.35.

Critical Points moving up: 22222.58--- 22418---22479.55---22600---22834---22892.

Critical Points moving down:-21989---21861---21611---21542----21464.

(Bold and underlined figures are most important)

It opened on a positive note at 21940.15 and went down and made a low of 21611.40 but in the late afternoon it started moving up and made a high of 22233 and closed at 22105.20 with a gain of 256.44 points. It closed by more than 490 point up from the low of the day; therefore it seems that the ongoing down move may be over and a bottom may be in place at 21611.40 for the time being and if it is so then it should not break the level of 21989 on the closing basis.

In view of the above observation long trade can be tried on decline but not below 21989 for sure or if it moves and maintain above 22188 for some time. Please note that if it moves below 21989 and sustain for some time then short trade should also be attempted because then the corrective mode may resume again.

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 near but not below 21989 if it holds it for some time with stop loss of 21830.

Or

Buy if it moves and maintain above 22188 for some time with a stop loss of 22090.

2. Sell if it maintain below 21989 with a stop loss of 22120.

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.