A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—21.10.2020

 

CNX--BANK NIFTY

Open-24117.35--High-24410.90--Low-24039.85—Close-24311.80 on 20.10.2020

Support:24240/24096.75/23912.75/23822/23605.40/23388/23211.35/2308122866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.

Resistance:24365/24617.15/25105.35/25199/25232.60/25426.75/25723.55/25953.50/26408/26491.85.

(Bold and underlined figures are most important)

It is overall not that great technically in comparison with CNX-Nifty , but it is improving fast on the technical chart and has been showing much greater strength in last 3 days which is good sign, but the only concern is that the gap it created on 19.10.2020 is still there and if it attempts to fill the gap in next 2-3 days, which is possible then it could come down to 23646 level and if it does not fill the gap in the stipulated time then there is no immediate concern for it. In case it corrects from here then moving down the key points are 24267 & 24071 break below 24267 will be an alert sign for the long traders and sustained break below 24071 on the closing basis may push it into corrective mode which may please be noted. Going down it may find support at 23860---23690—23521. But looking at today movement it seems that the up move should continue off course with intermittent correction and moving up from here the possible upside target or the resistance points could be at 24267---24365---24522---24656---24944---25232.60---25427---25724---25953---26312. Please note that if it sustains above 24267 on the closing basis then it is likely to retest its top of 25232.60 or may go beyond and most importantly sustained break above 24365 on the closing basis will open the upside up to 26312 levels for it.

In view of the above observation long trade can be tried on decline but not below 24071 or if it maintains above 24365 for some time. Since it seems that it has picked up the up momentum therefore short trade in general should be avoided. But 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 maintains above 24365 for some time with a stop loss of 24250.It could be risky trade.

Or

Buy on decline r near but not below 24071 with a stop loss of 24000.It could be a risky trade but worth trying.

2. Sell on the rise near or within the range of 24600---24700 with a stop loss of 24775. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves below 24070 and maintain for some time with a stop loss of 24200.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.