Wednesday, 28 October 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—29.10.2020

 

CNX--BANK NIFTY

Open-24737.85--High-24780.70--Low-24057.95—Close-24232.50 on 28.10.2020

Support: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.

Resistance24240/24365/24617.15/:24823.60/25105.35/25199/25232.60/25426.75/25723.55/25953.50/26408/26491.85.

(Bold and underlined figures are most important)

It is playing See—Saw with the key points of 24267---24365---24386, yesterday it decisively moved above these points and today it has closed below all these points which is an extremely weak sign  and indicates that further fall may be ahead if it does not bounce back above these points at the earliest. Since it has broken 24386 levels on the closing basis it has gotten into short-term correction mode, sustained break below 23780 will push it into medium term correction mode and most importantly sustained break below 23081on the closing basis will put it into long term correction mode and will potentially threat the long term uptrend which may please be noted. Moving down it may find support at 23897---23780---23678---23408---23341---23135---23081---22614. It is imperative to mention here that sustained close above the key points of 24267---24365---24386 is needed to give some hope for the continuation of the up move else down move will continue.     

In view of the above observation for safe traders long trade can only be tried if it moves and maintains above 24386 on the closing basis. However aggressive traders can try long trade if it moves and maintain above 24386 for some time intraday or on decline at the appropriate points as mentioned above with self-defined short stop losses but not below 23780. In light of today’s down move it seems that correction may deepen in coming days therefore it is suggested to attempt short trade 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 23780 but not below it with a stop loss of 23670. It is for aggressive traders. It could be a risky trade.

Or

Buy if it moves and maintain above 24386 for some time with a stop loss of 24220.It is for aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 24575--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 and maintain 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 24386 in first two hours of trade even intraday with a stop loss of 24440.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.

 

 

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