A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –5.8.2020

CNX--BANK NIFTY

Open-21248.25--High-21576.35--Low-21057.75—Close-21490.50 on 4.8.2020

Support:21462.40/21375/21122.10/21031.45/21027/20926/20501/20324.

Resistance:21546/21611.40/21768/21807/21865/21967/22338.

Critical Points moving up: 21546---21640---21865---22338.

Critical Points moving down: - 21464---21375---21027---20926---20501.

(Bold and underlined figures are most important)

It gave a pullback rally as envisaged in my post for 4.8.2020 it did cross its critical point of 21537 & 21546(it can change) intraday but could not close above it. Please note that only sustained close above these point can help it pick up momentum else this up move may fizzle out in next 2-3 days time. However moving up it will face resistance at 21760---21885---21940---22122---22379. Similarly moving down it will find support at 21464---21375---21027---20926 levels and sustained break below 20926 may accelerate the down move.

In view of the above observation long trade can only be tried if it moves and maintain above 21546 on the closing basis, buy on decline should be avoided because if it does not move above its critical point of 21537 & 21546(it can change) then this up move may end abruptly also.  In light of this short trade should also be attempted at appropriate points for taking advantage of the down 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 if it moves and maintain above 21546 for reasonable period of time with a stop loss of 21455.

2. Sell if it moves below 21375 for some time with a stop loss of 21500.

Or

Sell if it does not move above 21546 in first two hours of trade with a stop loss of 21620. 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.