A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –7.8.2020

CNX--BANK NIFTY

Open-21644.25--High-21926.55--Low-21370.30—Close-21642.60 on 6.8.2020

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

Resistance:21768/21807/21865/21967/22378/22418/22479.85/23080.60.

Critical Points moving up: 21865---22122----22378---22418---22479.85.

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

(Bold and underlined figures are most important)

It closed above its critical point of 21537 & 21546(it can change) today and if it holds these points then the up move may continue off course with intermittent correction. Moving up it will face resistance at 21864—21936---21121---22378 levels and it may exhaust or take a breather by correcting at any of these points before deciding the further direction. Looking at last 2-3 days trading movement, I still feel that holding its critical level of 21537 & 21546(it can change) looks slightly dicey at this point of time, so watch out. Please note that sustained break below these levels can push it into corrective mode again.

Since it closed above its critical points of 21537 & 21546 therefore long trade can be tried on decline but not below 21546 in any case. Short trade can also be attempted if it breaks 21537 levels and sustain below it or attempt it after a reasonable rise in the appropriate range for taking advantage of the possible corrective move because it seems that this up move may not last long.

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 21400.

2. Sell if it moves below 21536 and maintain for some time with a stop loss of 21650.

Or

Sell on the rise near or within the range of 21950---22200 with a stop loss of 22300. 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.