Thursday, 15 October 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—16.10.2020

 

CNX--BANK NIFTY

Open-23920.35--High-24087.85--Low-22970.95—Close-23072.40 on 15.10.2020

Support:22866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.

Resistance:23081/23211.35/23605.40/23822/23912.75/24096.75/24240/24365/24617.15/25105.35/25199/25232.60.

(Bold and underlined figures are most important)

After two days of fall it sharply bounce back on 14.10.2020 giving an impression that it has completed the correction but could not sustain the up move and retraced it completely today exhibiting tremendous weakness, furthermore it has broken its recent bottom of 23492.70 it made on the line chart on 13.10.2020 and it has also closed below its key point of 23297 & 23081 which indicates that it has slipped into correction today and if it sustain below 23081 then the correction could deepen and moving down it will find support at 22824---22744---22418---22297---21967---21750---21462---21298—21161 levels. It may bounce back from any of these points for a while or for good has to be seen but it is important to mention here that sustained break below 22418 on the closing basis will open the downside up to 20000 which may please be noted. Please note that to resume the up move from here again it has to move above its key points of 23297 & 23081 and sustain on the closing basis else correction may continue for some time. Moving up it will face resistance at 23388---23611---23822---24094—24267---24365.

It seems that it has slipped again into correction mode therefore for safe traders long trade should be avoided till the correction completion looks visible but it can be tried if it moves and sustain above 23081 & 23297 on the closing basis. However aggressive traders can try long trade for the day on decline at appropriate points or near 22418 but it could be a highly risky trade mind you. In view of today’s sharp down correction it would be better to adopt sell on the rise strategy as of now.

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 23297 for some time with a stop loss of 23060.

Or

Buy on decline near but not below 22418 with a stop loss of 22300.It could be a risky trade.

2. Sell on the rise near or within the range of 23400---23500 with a stop loss of 23575. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves below 23081 and maintain for some time with a stop loss of 23180.It could be a risky trade but worth trying. 

Or

Sell if it moves below 22970 and maintain for some time with a stop loss of 23110.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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.