A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –14.8.2020

 

CNX--BANK NIFTY

Open-22395.20--High-22439.95--Low-22147.65—Close-22196.25 on 13.8.2020

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)

As envisaged it slightly corrected today. It has been moving in a short range for few days, therefore it seems that a big move may be in store for it on the either side, sustained break above the range of 22710(it will change)—22775 will take it up much faster, similarly sustained break below 21537 may push it into correction mode, which may please be noted.

Please note that the view and observation in my post for 13.8.2020 will be valid for 14.8.2020 trading session also except for some change in trading strategy.

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 21990 with a stop loss of 21850.

2. Sell if it moves below 21990 and maintain for some time with a stop loss of 22130.

Or

Sell on the rise near or within the range of 22700---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.