A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –3.8.2020

CNX--BANK NIFTY

Open-21730.55--High-21806.95--Low-21375—Close-21640.05 on 31.7.2020

Support:21543/21462.40./21375/21222.45/21027.55/20926.45/20316/20122.25/20010/19507.

Resistance:21768/21809/21861/21967/22076/22119.35/22222.58/22377.06/22418/22479.55/22670.05/22695.92/23080.60/23211.35.

Critical Points moving up: 21861---22120---22377--- 22418---22479.55---22695.

Critical Points moving down:-21543----21464---21375----21027.

(Bold and underlined figures are most important)

The correction continues and it is has closed on a negative note for 5 days in last 6 trading session, which speaks of gross weakness in it, but today it closed with a meagre loss of 6.79 points. The trading range as of now is between 21375---21464---21543---21809---22076---22293(these entire figure can change with the price movement) and if does not break recent low of 21375 and close above 21809 and sustain then it will give an indication that it could stage a relief rally else down move may continue. Moving up it will face resistance at 22076---22293---22510---22778.Similarly sustained close below 21375 should accelerate the down move and moving down it will find support at 21180---21027---20926---20438.      

In view of the above observation, it is suggested to avoid long trade now and should only be tried it moves and sustain above 21809 on the closing basis but aggressive traders can try it on decline also near 21027 but not below it for a possible pullback move. Since it is in correction mode, it is suggested to adopt sell on the rise strategy or sell on the price breakdown for corrective move or may be a rally breakdown advantage. Looking at the overall technical setup it seems that the down move should continue with intermittent relief rally.

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 21027 but not below it with a stop loss of 20890. It could be a highly risky trade.

 

2. Sell if it moves below 21375 with a stop loss of 21470 for a target of 21180---21027---20926.

Or

Sell on the rise near or within the range of 21870---22080 with a stop loss of 22150.

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.