Sunday, 15 November 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---17.11.2020

 

CNX--BANK NIFTY

Open-28685.70--High-28752.45--Low-28431.85—Close-28594.30on 14.11.2020

Support:28525.45/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24365/24240/24096.75/23912.75/23867.75/23822/23612.70/23605.40/23388/23211.35/23081/22866/22479.85/22439.95/22418.

Resistance28845/29030.90/29156.25/29435.05/29612.55/30121.75/30220/30649/30801/30899/30996/31649.45.

(Bold and underlined figures are most important)

It closed on a positive note for the 2nd day today but could not close above its recent top of 28845 on the line chart and could not even go near to its critical resistance range of 29030.90—29314 but that does not mean that it is weak because it is way above its key points of 27752---26995.15 & 25983(figures can change with upward price movement) which speaks of good strength and may be after consolidation here it may cross the aforesaid hurdles and pick up strong momentum which may take it up to its all time high level of 32613.10 or beyond. Similarly 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. Furthermore before closing above 28845 if it breaks below 28278 on the closing basis then it could still slip into the correction mode, which may please be noted. The overall technical setup is strong and indicates further up move ahead in coming days but off course with intermittent correction.

Moving down its critical support points at 28523---28367---28210---28016---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 for safe traders long trade can be tried if it maintains above 28600 for some time and avoid long trade on the decline for the day, but aggressive traders can try long trade on decline also up to 28278 but not below it, but this could be a risky trade mind you. Please note that it may pick up momentum if it moves above 28845 on the closing basis. Since it is showing good 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 28278 but not below it with a stop loss of 28200.It is for aggressive traders.  

Or

Buy if it maintains above 28600 for some time with a stop loss of 28425.

2. Sell on the rise near or within the range of 29240--29320 with a stop loss of 29400. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 28200 for some time with a stop loss of 28300. It could be a risky trade.

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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