A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—28.10.2020

 

CNX--BANK NIFTY

Open-24288.05--High-24809.65--Low-23924.20—Close-24769.50 on 27.10.2020

Support:24617.15/24365/24240/24096.75/23912.75/23867.75/23822/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.

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

(Bold and underlined figures are most important)

As anticipated it sharply and decisively bounced back not only above its key points of 24267---24365---24386 but crossed its recent top of 24635.05 on the line chart also, which is a very positive sign and indicate that the up move may continue provided it sustain above these key points. However if it breaks these key points again and sustain below it then this time it is going to witness sharp fall. Todays robust up move indicates that further rise is very much likely in coming days off course with intermittent corrections. Moving up it will face resistance at 24823.60---24944---25232.60---25427---25724---25953---26312 levels. It is important to mention here that sustained close above 24365 could take it to 26312---26492 levels in coming days/weeks, which may please be noted.

In view of the above observation long trade can be tried if it moves and maintains above 24825 for some time or on decline at the appropriate points as mentioned above with self-defined short stop losses but not below 24267. In light of sharp up move today short trade should be avoided in general but 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.

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 24267 but not below it with a stop loss of 24170.

Or

Buy if it moves and maintain above 24825 for some time with a stop loss of 24700.

2. Sell on the rise near or within the range of 25300--25400 with a stop loss of 25480. 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 does not move above 24825 in first two hours of trade even intraday with a stop loss of 24875.It could be a highly 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.