A TECHNICAL VIEW ON CNX--BANK NIFTY FOR –8.9.2020

 

CNX--BANK NIFTY

Open-23036.25--High-23109.10--Low-22716.23—Close-22945.05 on 7.9.2020.

Support: 22866/22479.85/22439.95/22418/21967/21886/21403/21031.

Resistance:23080.60/23211.35/23385.30/24240/24364.17/24617/25232.60/25430/25725.

Critical Points moving up: 23080---23318---23770---24364.27----24612---24880----25120----25432.      

Critical Points moving down:-22866---22693---22479.85---22418---22367---22169--21871.

(Bold and underlined figures are most important)

The view and observation expressed in my post for 7.9.2020 will be valid for 8.9.2020 trading session also, except for the change in the critical  points which are at 22653---22330(figures will change every day) for the day; sustained break below 22330 on the closing basis may put the uptrend in potential danger. To resume the uptrend it has to really toil hard and cross many important point on the upside which is less likely to happen as of now. The technical indicators suggest that the fall is likely to continue with intermittent short up ticks. There has been some change in the trading strategy also for the day.

It is imperative to mention here that the ongoing surge in the Indian as well in the rest of the world stock market for the last few months is not at all fundamentally backed but purely liquidity driven which is concerning. In light of this instead of caution it seems that there is an irrational exuberance in the stock market now which is even more concerning. Please take my word that at this juncture if investors and traders do not exercise extreme caution and alertness particularly in the long trade then they are surely going to be trapped in coming days. One cannot time the correction but it seems that it is around the corner. 

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 or within the range of 22330—22169 with a stop loss of 22000. It could be a risky trade.

2. Sell on the rise near or within the range of 23400---23500 with a stop loss of 23600. It could be a risky trade but worth trying.

Or

Sell if it moves below 22866 and maintain for some time with a stop loss of 22960. 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.