A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –11.8.2020

 

CNX--BANK NIFTY

Open-21824.90--High-22071.95--Low-21795.10—Close-21900.25 on 10.8.2020

Support:21807/21768/21611.40/21546/21536/21462.40/21122.10/21031.45/21026/20926/20501/20324.

Resistance:21967/22378/22418/22479.85/23080.60/23211.35.

Critical Points moving up: 22122----22378---22418---22479.85---22697---22775.

Critical Points moving down:-21865---21536---21464---21375---21027---20926.

(Bold and underlined figures are most important)

It is holding its critical point of 21537 & 21546(it can change) which is a good sign and if it continues to holds these points then the up move may continue off course with intermittent correction. Moving up it will face resistance at 21936---22121---22378---22697---22775 levels and it may gain some strength for the up momentum if it moves and maintain above 22418. Please note that sustained break below its critical points of 21537 & 21546(it can change) levels can push it into corrective mode again.

 In view of the above observation long trade can be tried on decline near but not below 21546 or can be tried if it moves and maintain at least above 21936 for some time. The technical setup is not that strong as of now in comparison with Nifty-50, therefore traders should be extremely alert and cautious in the long trade. Short trade can also be attempted if it breaks 21537 levels and sustain below it for some time or attempt it after a reasonable rise in the appropriate range for taking advantage of the possible 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 on decline but not below 21546 with a stop loss of 21430.

Or

Buy if moves and maintains above 21936 for some time with a stop loss of 21780.It could be a risky trade but worth trying.

 

2. Sell if it moves below 21537 and maintain for some time with a stop loss of 21650.

Or

Sell on the rise near or within the range of 22450---22550 with a stop loss of 22650. It could be a risky trade but worth trying.

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.