Wednesday, 30 September 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—1.10.2020

 

CNX--BANK NIFTY

Open-21405.25--High-21549.35--Low-21128.50—Close-21451.80 on 30.9.2020

Support: 21403.15/21128/21031/21027/20926/20404.0/20316.20/20122.25/19507.

Resistance:21462.40/21611.40/21807/21811.50/21886.70/21967/22139.10/22479.55.

Critical Points moving up: 21480---21544---21859---22202---22250---22286--22418.          

Critical Points moving down:-21274---21108---20942---20736---20686---20404.90.

(Bold and underlined figures are most important)

As expected it staged a pullback rally for the last 4 days but despite that it has not been able to sustain above its critical and important points of 21479.54(this figure can change) & 21544, which indicate extreme weakness in it. Please note that if it fails to move above 21544 on the closing basis then it may not resume the up move and if it sustain below 21479.54 on the closing basis then the ongoing pullback rally is over for sure and down move may resume. Moving down it may find support at 21274---21108---20942---20736---20686---20404. Similarly moving up it will face stiff resistance at 21544---21859---22202---22250---22286---22418. The overall technical setup looks weak therefore in all likelihood pullback rally seems to be over and down should begin.  

Since pullback rally seems to be over therefore long trade should be avoided for the day, however it can be tried by the aggressive traders, if it moves and maintain above 21544 for some time, but it could be a risky trade mind you. It is therefore strongly suggested for the day to try short trade on the rise or sell on the price breakdown 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 sustain above 21544 for some time with a stop loss of 21530. It could be highly risky trade.

2. Sell on the rise near or within the range of 21750---21860 with a stop loss of 21950. It could be a risky trade but worth trying.

Or

Sell if it moves below 21400 and maintain for some time with a stop loss of 21550.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.

 

 

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