A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—27.10.2020

 

CNX--BANK NIFTY

Open-24525.80--High-24577.30--Low-23867.75—Close-24075.45 on 26.10.2020

Support:23912.75/23867.75/23822/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.

Resistance:24096.75/24240/24365/24617.15/24823.60/25105.35/25199/25232.60/25426.75/25723.55/25953.50/26408/26491.85.

(Bold and underlined figures are most important)

It has broken its key points of 24386---24365---24267 and closed decisively below it and if it does not bounce back above these points in next 1-2 trading session then the down correction may accelerate and moving down it will find support at 23897---23678---23408—23341---23081. It can bounce back from any of these points for a pullback rally but if it moves below 23081 and sustain on the closing basis then the correction will further deepen which may please be noted. I once again repeat that to regain the up momentum again it has to move above its key points of 24267---24365---24386 and sustain on the closing basis as of now, else correction will continue.

Moving up it will face resistance at 24267---24365---24386--- 24522---24656---24944---25232.60---25427---25724---25953---26312 levels.

In view of the above observation long trade can only be tried if it moves and maintains above 24386 on the closing basis or on decline at the appropriate points as mentioned above but not below 23081. Since it has broken its key points correction may continue, therefore only short trade can be attempted either after a reasonable rise or on the price breakdown for taking advantage of possible intraday correction or may be long correction, till clarity on correction completion emerges.

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 on decline at appropriate points or near 23081 but not below it with a stop loss of 22950.

2. Sell on the rise near or within the range of 24350--24425 with a stop loss of 24480. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it sustains below 24190 for some time with a stop loss of 24270.It could be a risky trade but worth trying. 

Or

Sell if it sustains below 24115 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 favorable  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.