Saturday, 10 October 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—12.10.2020

 

CNX--BANK NIFTY

Open-23312.60--High-23904.10--Low-23132.45—Close-23846.80 on 9.10.2020

Support:23822/23605.60/23211.35/23080.60/22028/21967/21909.40/21807/21027/20926/20404.90.

Resistance:23912.75/24096.75/24240/24365/24617.15/25105.35/25199/25232.60.

(Bold and underlined figures are most important)

Its technical strength is not that strong in comparison with CNX-Nifty but is improving fast day by day and it is very much likely that it could retest its recent top of 25232.60 or may go much higher than this in coming days as of now off course with intermittent correction. The only concerning thing is that it had a vertical rise and in 10 trading session it has risen by very close to 3400 points on the closing basis, so it is highly vulnerable for correction also and if it correct from here then it could have a vertical fall too, but as long as it holds 23081(this figure will change if it moves further up from here) on the fall then it could bounce back and resume the uptrend again but sustained break below it on the closing basis can push it into short correction mode. In that case it will find good support at 23388---23081---22567---22418 sustained close below 22418 on the closing basis will accelerate the down move which may please be noted. Similarly moving up it will face resistance at 24094---24365---25232.60---26311.30---26492. sustained close above 24365 will open the upside up to 26492 levels   The bias is up technically but correction also looks imminent and can happen anytime, so be alert and cautious in the long trade at this point of time.

In view of the above observation long trade can be tried if it moves and maintain above 23905 or buy on decline can also be tried with the help of support points mentioned above but not below 23081. Since it is in strong uptrend therefore short trade is a avoid in general but in light of vertical rise for ten days correction is also possible therefore short trade can also be tried  on the rise in the appropriate range or on the price breakdown for taking advantage of a possible corrective move. I once again repeat that the overall bias is highly bullish.

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 23905 for some time with a stop loss of 23800.

Or

Buy on decline near but not below 23081 with a stop loss of 22900.

2. Sell on the rise near or within the range of 24500---24600 with a stop loss of 24700. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves below 23780 and maintain for some time with a stop loss of 23870.It could be a risky trade but worth trying for intraday corrective move

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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.