CNX--BANK NIFTY
Open-24090.15--High-24277.35--Low-23612.70—Close-23900.90
on 30.10.2020
Support:23867.75/23822/23612.70/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418/22346/22122/22080/22028/21967/21909.40/21807/21027/20926/20404.90.
Resistance23912.75/24096.75/24240/24365/24617.15/:24823.60/25105.35/25199/25232.60/25426.75/25723.55/25953.50/26408/26491.85.
(Bold and underlined figures are most
important)
It is still below its key points of 24267---24365---24386 therefore already into short term correction
mode and sustained break below 23780 on the closing basis 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 also which may please be noted. Moving down it may find support at 23897---23780---23678---23612.70---23408---23341---23135---23081---22614.
It is imperative to mention here that sustained close above the key points of 24267---24365---24386
as of now is needed to give some hope for the continuation of the up move else
down move will continue. The overall chart setup and some technical indicators
suggest that further fall may be ahead, till it moves above its key points and
sustain as of now.
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 23620. 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 23620 but not below it with a stop loss of 23540. 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 24400--24500
with a stop loss of 24575. It could be a risky trade but worth trying for
intraday corrective move.
Or
Sell if it maintain below 23900 for some time with
a stop loss of 24000It could be a highly risky trade but worth trying.
Or
Sell near if it does not move above 24386 for a
reasonable time 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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.