A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---26.11.2020

 

CNX--BANK NIFTY

Open-30021.90--High-30197.85--Low-29132.30—Close-29199on 25.11.2020

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

Resistance:29314/29435.05/29612.55/29784.75/30121.75/30220/30649/30801/30899/30996/31649.45.

(Bold and underlined figures are most important)

Further to my last post of 23.11.2020 it moved up and hit a high of 30197.85 today and then slipped down gradually and closed with a huge loss of 540.85 points, which is weak sign. Its benchmark point is 29314 and other key points are at 29816---29609---28643.75---27886.70---26874.60(figures can change). It has broken its first two key points of 29816---29609 decisively therefore it has gotten into very short correction mode for sure and also broken its benchmark point of 29314 also which is a very weak indication and if it does not bounce back above it and sustain on the closing basis then correction may deepen. Please note that sustained break below 28643.75 on the closing basis will push it into short term correction mode, sustained break below 27886.70 will push it into medium term correction mode and most importantly sustained break below 26874.60 on the closing basis can push it into long term correction mode and will potentially threaten the uptrend also, which may please be noted. The overall technical setup is still o.k. for up move but certain technical indicators are showing negative divergence and if that comes into play then it could witness sharp fall and then correction may last for some time, looking at today’s move it seems that further fall is very likely to happen.  It is therefore advised that one should be very alert and cautious in the long trade. So watch out

Moving down its critical support points at 29198---29030.90---28904---28643.75---28292---28202---28119---27703.

Moving up its critical resistance points at 29314---29609---29816---30145.85---30220---30649---30801---30899---30996---31649.

In view of the above observation for safe traders long trade should be avoided on the decline for the day but can be tried if it moves and maintain above 29545 for some time. But aggressive traders can try long trade on decline at appropriate points or near 29020 but not below it or if it maintains above 29314 & 29545for some time. Kindly note that in light of today down move buy on decline trade for the day could be a risky affair mind you. Since it slipped into very short correction mode today and some other technical indicators are also pointing that it may seek lower levels in coming days, therefore short trade can also be attempted after a reasonable rise or on the price breakdown for taking advantage of the corrective move.

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 29020 but not below it with a stop loss of 28890.It is for aggressive traders and could be a highly risky trade.  

Or

Buy if it moves and maintains above 29314 for some time with a stop loss of 29190. It is for aggressive traders and could be a risky trade. 

Or

Buy if it moves and maintains above 29545 for some time with a stop loss of 29450.   

2. Sell on the rise near or within the range of 29750--29850 with a stop loss of 29925. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 29000 for some time with a stop loss of 29150. It could be a highly risky trade but worth trying for corrective move.

Or

Sell if it moves and maintains below 28890 for some time with a stop loss of 29030. 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.