A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –13.8.2020

 

CNX--BANK NIFTY

Open-22135.95--High-22326.55--Low-21990—Close-22264 on 12.8.2020

Support:22122/21967/21807/21768/21611.40/21546/21536/21462.40/21122.10.

Resistance:22378/22418/22479.85/23080.60/23211.35/23235/23440.

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

Critical Points moving down:-22122----21865---21536---21464---21375.

(Bold and underlined figures are most important)

It is well above its critical points of 21537 & 21546 and it is steadily moving up, which is a good sign. But it has been moving up for straight 7 days therefore it looks slightly vulnerable for correction also and it looks imminent, but it could still move up a bit before correction and moving up it will face resistance at 22378---22418---22697---22775 levels and it may gain some strength for the up momentum if it moves and maintain above 22418 on the closing basis. It is important to mention here that sustained break above the range of 22740(it can change) ---22775 on the closing basis can take it up much faster.

In view of the above observation long trade can be tried on decline near but not below 21936 or can be tried if it moves and maintain above 22379 for some time. The technical setup is o.k. but not that strong as of now in comparison with Nifty-50, furthermore in light of 7 days straight rise traders should be extremely alert and cautious in the long trade because it could correct any moment. Short trade can also be attempted if it breaks 21936 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 21936 with a stop loss of 21800.

Or

Buy if moves and maintains above 22379 for some time with a stop loss of 22250.It could be a risky trade.

 

2. Sell if it moves below 21936 and maintain for some time with a stop loss of 22070.

Or

Sell on the rise near or within the range of 22750---22800 with a stop loss of 22900. 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.