A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—23.10.2020

 

CNX--BANK NIFTY

Open-24447.35--High-24691.15--Low-24250.20—Close-24484.15 on 22.10.2020

Support:24365/24240/24096.75/23912.75/23822/23605.40/23388/23211.35/2308122866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.

Resistance:24617.15/24823.60/25105.35/25199/25232.60/25426.75/25723.55/25953.50/26408/26491.85.

(Bold and underlined figures are most important)

It corrected today  and went below all its key points intraday but at the end closed reasonably above its key points of 24386---24365---24267 which is a good sign. Please note that to keep the up momentum going it has to hold these key points and to close above its recent closing top of 24635.05 on the line chart in next 1-2 days and then move above 24823.60 and close on the bar chart. After yesterdays robust bounce back today’s weak move was little surprising, however it still looks o.k. for the up move as long as it holds the key points.  However in case it goes down, sustained break below 24386 on the closing basis may push it into correction mode and sustained  break below 24267 on the closing basis may accelerate the fall and then it will find support at 24115—23897---23678---23408—23341. Similarly moving up from here the possible upside target or the resistance points could be at 24522---24656---24944---25232.60---25427---25724---25953---26312. Please note that as long as it holds above 24365 levels on the closing basis then it may be heading for the level of 26312—26500 in coming days/weeks.

In view of the above observation long trade can be tried on decline near 24386 & 24267 but not below 24267 or if it maintains above 24635 for some time. Today’s correction may continue if it breaks its key points therefore short trade can also be attempted after a reasonable rise or on the price breakdown for taking advantage of possible intraday correction or may be long 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 24635 for some time with a stop loss of 24550.It could be risky trade.

Or

Buy on decline near 24386 & 24267 but not below 24267 with a stop loss of 24150.

2. Sell on the rise near or within the range of 25300---25450 with a stop loss of 25530. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves below 24150 and maintain for some time with a stop loss of 24270.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.