A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---19.11.2020

 

CNX--BANK NIFTY

Open-29107.90--High-29784.75--Low-29056.75—Close-29749.85on 18.11.2020

Support:29612.55/29435.05/29156.25/29030.90/28845/28525.45/27754.45/27589/27164/26950/26545.70/26492/26408/26311.30/25953.50/25891/25723.55/25426.75/25232.60/25199/25105.35/24823.60/24617.15/24364.

Resistance30121.75/30220/30649/30801/30899/30996/31649.45.

(Bold and underlined figures are most important)

It is exhibiting extraordinary power in the up move, therefore up journey may continue in coming days with in between down correction. Furthermore it is well above its key points of 29293.50---28328---27571---26559, (the figures can change), which speaks of tremendous strength. Kindly note that break below 29293.50 can put it into very short correction, sustained break below 28328 on the closing basis will push it into short term correction mode, sustained break below 27571 will push it into medium term correction and most importantly sustained break below 26559 can push it into long term correction mode and will potentially threaten the uptrend also, which may please be noted. Since it has crossed its most critical point of 29314 on the closing basis therefore it is a very important benchmark point for now and one should be alert in long trade if it happens to close below it. The overall technical setup is strong and indicates further up move may be ahead in coming days but off course with intermittent correction. Furthermore it is likely to retest its all time high of 32613.10 or may go beyond in coming days provided it sustains above 29314 on the closing basis.

It is imperative to mention here that it is on a very sound technical footing but market is showing sign of euphoria, therefore it is advised to be cautious and careful in the long trade.

Moving down its critical support points at 29314---29030.90---28989---28744---28498---28328---28119---27703.

Moving up its critical resistance points at 29851---30220---30649---30801---30899---30996---31649.

In view of the above observation long trade can be tried if it moves and maintain above 29785 for some time or on the decline at appropriate points or near 29050 but not below it for the day, but aggressive traders can try long trade on decline up to 28328 but not below it, but this could be a risky trade mind you. Therefore it is suggested to avoid long trade below 29050 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 28328 but not below it with a stop loss of 28240.It is for aggressive traders and could be highly risky trade.  

Or

Buy on decline at appropriate points or near 29050 but not below it with a stop loss of 28950. But if it happens to close below29314 at the end then the trade has to be squared off in any case.

Or

Buy if it maintains above 29785 for some time with a stop loss of 29700.

2. Sell on the rise near or within the range of 30250--30350 with a stop loss of 30425. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 28950 for some time with a stop loss of 29070. It could be a highly risky trade but worth trying for corrective move.

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.