A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---13.11.2020

 

CNX--BANK NIFTY

Open-28633.75--High-28672.90--Low-28066.05—Close-28278.80 on 12.11.2020

Support:27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24365/24240/24096.75/23912.75/23867.75/23822/23612.70/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418.

Resistance28525.45/29156.25/29435.05/29612.55/30121.75/30220/30649/30801/30899/30996/31649.45.

(Bold and underlined figures are most important)

As anticipated for the last few days it finally corrected on the closing basis today but it is well above its key points of 27752---26995.15 & 25983(figures can change with upward price movement) which speaks of tremendous strength. But sustained break below 27752 on the closing basis will push it into short term correction mode, sustained break below 26995.15 will push it into medium term correction and most importantly sustained break below 25983 can push it into long term correction mode which can potentially threaten the uptrend, which may please be noted. Similarly if it moves and maintains above 28720---28845---29031 on the closing basis then it may resume the up move again, but it will pick up strong momentum above 29314 only and then it could retest it all time high of 32613.10 or may go beyond also . In light of its inherent strength it seems that correction may not last long if it manages to hold its key points on the closing basis. But the only concern is that the gap it created on 9.11.2020 & 10.11.2020 is still there and it can still make an effort to fill the gap in next 1 trading session and 1-2 trading session respectively and in that case it can come down to 27595 & 25853 levels but if did not fill the gap in next 1& 1-2 days respectively then concern for filling this gap may be over for the time being. The overall technical setup is strong and indicates further up move may be ahead in coming days but off course with intermittent correction.

Moving down its critical support points at 28211---28066---27752---27595---27165---26995.15---26961---26321---25983---25735---24891---24696.

Moving up its critical resistance points at 28673---28720---29030.90---29314---29613---30220.

In view of the above observation long trade can be tried, if it moves and maintains above 28280 for some time or on the decline at appropriate points or near 27752  but not below it for the day. Please note that long trade on decline could be a risky affair for the day so for safe traders it is suggested to avoid it for the day. Since it is showing robust strength for the continuation of the up move, therefore short trade should be avoided in general but can be attempted after a reasonable rise or on the price breakdown for taking advantage of possible intraday correction or may be for long correction at times.

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 27752 but not below it with a stop loss of 27670.  

Or

Buy if it maintains above 28280 for some time with a stop loss of 28050.

2. Sell on the rise near or within the range of 28720--28850 with a stop loss of 28925. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 27670 for some time with a stop loss of 27770. It could be a risky trade but worth trying.

Or

Sell if it moves below 28050 with a stop loss of 28150. It could be a highly risky trade mind you.

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.