Wednesday, 14 October 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—15.10.2020

 

CNX--BANK NIFTY

Open-23353.15--High-23962.70--Low-23149.45—Close-23874.65 on 14.10.2020

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)

As envisaged in my post for 12.10.2020 it corrected  for 2 days on closing basis and today after making a low of 23149.45 it bounced back sharply in the late afternoon to close near the high of the day. It seems that it has completed its correction on the closing basis and now ready to resume the up move again. However in case if it loses the up momentum, chances of which looks slim at this point of time then going down the key points would be 23492.70---23296---23081, sustained break below 23492 on the closing basis will signal that it could correct and sustained break below 23081 on the closing basis may push it into deep correction which may please be noted. Similarly moving up the upside target or the resistance points will be at 24094---24365---25232.60---26311.30---26492. Sustained close above 24365 will open the upside up to 26492 levels. The bias is positive as of now.

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 23492. Since it is in strong uptrend therefore short trade is should be avoided in general but it can be tried after a reasonable 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 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 23492 with a stop loss of 23450.It could be a risky trade.

2. Sell on the rise near or within the range of 24365---24500 with a stop loss of 24550. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves below 23490 and maintain for some time with a stop loss of 23560.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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