A TECHNICAL VIEW ON CNX--BANK NIFTY FOR --7.7.2020

CNX--BANK NIFTY

Open-22270.95--High-22399.25--Low-22171.05—Close-22198.95 on 6.7.2020

 

Support:21967/21807.40/21778/21462.40/21122.10/20926.45/20316/20122.25/20010/19507.

Resistance:22344.85/22479.55/22996.40/23611.40/23822/23923.30/24045/24240.

Critical Points moving up:--22480—22830—22940—23200--23830.

Critical Points moving down:--21778---21500---21180---20926.45.

(Bold and underlined figures are most important)

It opened with an up gap at 22270.95 and made a high of 22399.25 and then went down and made a low of 22171.05 and closed with a gain of 346.54 points. The gap it created today is still there and if it makes an effort to fill the gap in next 3-4 days which is technically possible then it can come down to 22130. Although it closed with a good gain but near the low of the day which is slightly concerning but it is again making higher bottom and top on the line chart and well above its critical point of 21778 & recent bottom of 21852.40 which is comforting and can still take it higher.

In view of the above observation up move is still on but with weak intensity, it will pick up momentum once it sustains above 22480 on the closing basis, so long trade can be tried if it maintains above 22200 or on decline but not below its recent bottom of 21852, because breaking recent bottom on the closing basis will show weakness and sustained break below21778 (it can change also) on the closing basis will indicate that it may slip in to correction. Last but not the least break below 21500 may signal the end of this rally, therefore it would be relatively safe to try long trade above 22200 for the day, which may please be noted. Short trade should also be attempted at critical range or point to take advantage of correction or may be a possible rally breakdown. The bias is up as of now.

I make it a point to mention in almost my all post that the upsurge in the entire world market is purely liquidity driven and completely defies fundamentals therefore it can end mischievously. So be vigilant and extra cautious in the 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 maintain above 22200 for some time with a stop loss of 22120.

Or

Buy on decline but not below 21852 with a stop loss of 21740.

2. Sell on the rise near 22950—23200(S/L-23300).

Or

Sell if it maintains below 21778 for some time with a stop loss of 21880.

Or

Sell near if it does not move above 22480 in first two hours of trade with a stop loss of 22550.

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.