A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—2.11.2020

 

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

suranank@gmail.com

Mobile—8240951127/9831313654.