Commodities

Wednesday, 11 November 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY---12.11.2020

 

CNX--BANK NIFTY

Open-28713.15--High-29030.90--Low-28211.10—Close-28845 on 11.11.2020

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.

Resistance29156.25/29435.05/29612.55/30121.75/30220/30649/30801/30899/30996/31649.45.

(Bold and underlined figures are most important)

It has been exhibiting tremendous strength and continuously moving up and this up move may continue with in between down correction , provided it respect its key points mentioned below and most importantly move above its tough range of 28850---29314 and sustain on the closing basis.

The chances of filling the gap it created on 5.11.2020 has receded now, therefore it may not come down to the level of 25891, but chances of filling the gap it created on 9.11.2020 & 10.11.2020 is still there in next 1-2 trading session and 2-3 trading session respectively and in that case it can come down to 27595 & 25853 levels but if did not fill the gap in next 1-2  & 2-3 days respectively then concern for filling this gap may be over for the time being.

Furthermore it has had a vertical & straight rise in the last seven days from 24120 points to 29030.90 intraday, so correction looks very imminent and can happen any time soon. Please note that now its key points are at 27752---26995.15 & 25983(figures can change with upward price movement) 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. As long as it holds these key points on the closing basis the ongoing up move will continue off course with intermittent down correction. Moving down it may find support at-28720---28211---27752---27595---27165---26995.15---26961---26321---25983---25735---24891---24696. The technical setup is strong enough as of now, so even if it corrects it is likely to resume the up move again provided it bounce back above its key points after correction is over. Moving up it will face resistance at 29030.90---29314---29613---30220. The bias is up as of now. I once again repeat that it is very strong on the technical footing as of now but at the same time it is highly vulnerable for correction also at this point of time.

It is most important to note that it will face very tough resistance in the range of 27720—29314 and it might make top in this range or earlier also for the time being or may be for good for a reasonable period of time, which may please be noted, but if it moves above 29314 and sustain on the closing basis then it is very much likely that it will retest it’s all time high of 32613.10 or may go beyond it also.  So be watchful and alert in long trade in the above mentioned top out range.

In view of the above observation long trade can be tried, if it moves and maintains above 29031 for some time or on the decline at appropriate points or near 27752 &26995  but not below it for the day. Please note that long position can be tried above 27752 in any case for the day. It is suggested that safe traders should avoid buy on decline 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 on decline at appropriate points or near 26995 but not below it with a stop loss of 26900. 

 

Buy if it maintains above 29031 for some time with a stop loss of 28940.

2. Sell on the rise near or within the range of 29200--29300 with a stop loss of 29375. 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 does not move above 29031 in first hour of trade with a stop loss of 29100. 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.

 

 

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