CNX--BANK NIFTY
Open-22334.95--High-22334.95--Low-21459.10—Close-21679.40 on 14.8.2020
Support:21611.40/21462.40/21459/21370/21122.10/21057-21026/20926/20316/20010.
Resistance:21768/21807.40/21967/22439.95/22479.85/23080.60/23211.35.
Critical Points moving up: 21797---21902---22108---22340---22418---22479.85.
Critical Points moving down:-21536---21459----21359---20926---20501---20380---20245---20010.
(Bold and underlined figures are most important)
As envisaged that it could give big move on the either side, it choose to plunged down and fell sharply by 516.94 points on the closing basis. But it has still managed to hold its critical point of 21536 and if it continue to hold it and the low of the day i.e.21459.10 then it could stage a bounce back from here else correction could deepen. It started the fall yesterday; and its technical setup is not that strong, therefore it has to be seen how it pans out in the next 2-3 days for taking trade action. Moving down in it could find support at 21536---21459----21359---21026----20926---20501---20380---20245---20010 levels. I once again repeat that down move may deepen below 21536 & 21459 but it has a very strong support in the range of 21031—20926 and if it does not bounce back from these levels then the down move may accelerate. Similarly moving up it will face stiff resistance at 21925---22108---22338.
In view of the above observation, for safe traders it is suggested to avoid long trade at this juncture but can try on decline near or within the range of 21026---20926. However aggressive traders can try long trade if it maintains above 21536---21459 for a reasonable time during the day and off course can try on decline in the above mentioned range. It seems that chances of it slipping into corrective mode for few days looks likely, therefore short trade can also be attempted on the price breakdown or on the rise also as it has exhibited distinct weakness in price pattern. In light of the volatility traders may get opportunity of both side trades for the day. But looking at yesterday’s fall traders should be extremely cautious and alert 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 on decline near
but not below 21536 if it holds this level for some time with a stop loss of 21440.
It could be a risky trade.
2. Sell if it moves below
21459 and maintain for some time with a stop loss of 21560.
Or
Sell on the rise near or
within the range of 22150---22300 with a stop loss of 22400. 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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.