Saturday, 17 October 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—19.10.2020

 

CNX--BANK NIFTY

Open-23219.85--High-23646.20--Low-23148.95—Close-23533.25 on 16.10.2020

Support: 23388/23211.35/2308122866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.

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

(Bold and underlined figures are most important)

It made a smart recovery today and moved above both its key points of 23297 & 23081 and if it sustain above these points on the closing basis then it could resume the up move again but the real momentum it will pick up with a close above 23875 as of now. Going up the possible upside target or the resistance points could be at 23650---23875---24094—24190.35---24267---24365. Please note that sustained break above 24365 will open the upside up to 26312 for it. The technical setup looks o.k. but in comparison with CNX-Nifty it is fairly weak, therefore if it breaks the above mentioned key points then it could head for correction again. Moving down it will find support at 22970---22824---22744---22418---22297---21967---21750---21462---21298—21161 levels. Please note that sustained break below 22970 can take it down to 22418 and sustained break below it on the closing basis will open the downside up to 20000 which may please be noted.

In view of the above observation safe traders can try long trade if it moves and maintain above 23650 for some time, but aggressive traders can try long trade now or on the decline at appropriate points or near but not below 23150. Short trade can also be attempted after a reasonable rise or on the price breakdown for taking advantage of possible intraday correction.

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 23650 for some time with a stop loss of 23500.It could be risky trade.

Or

Buy on decline at appropriate point or near but not below 23150 with a stop loss of 23070.It could be a risky trade but worth trying.

2. Sell on the rise near or within the range of 24150---24275 with a stop loss of 24340. 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 23170.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.

 

 

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