Wednesday, 4 November 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—5.11.2020

 

CNX--BANK NIFTY

Open-25539.55--High-25891--Low-25142—Close-25771.60 on 4.11.2020

Support: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.

Resistance25891/25953.50/26408/26492/2665/26950/27164/27589.

(Bold and underlined figures are most important)

It has been rising for the last three day and exhibiting tremendous strength, therefore further rise is surely ahead at this point of time and it is likely to hit the range of 26312---26492 in coming days off course with intermittent down correction provided it holds its key points of 25201.85---24596(figures can change) on the closing basis. Furthermore if it move and sustain above 26492 on the closing basis then it will open the upside up to 28720 which may be kept in mind. It is important to mention here that sustained break below 25201.85 on the closing basis can push it into short term correction mode and sustained break below 24596 can push it into slightly deeper correction mode. The overall technical setup is good and indicates that it may not have severe correction in coming days but one never know because of huge volatility anything can happen and some it kills also, so be alert and watchful.

Moving up the critical points would be at:-25953.50---26311---26492---26665--26950.

Moving down the critical points would be at:-25201.85---25232.60---25020---24775---24430---24068.

In view of the above observation long trade can be tried on decline but not below 25201.85 or if it moves and maintain above 25891 for some time intraday, it could be risky trade mind you. Since it is exhibiting extra ordinary strength in 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.

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 near 25201.85 but not below it with a stop loss of 25100.  

Or

Buy if it maintains above 25891 for some time with a stop loss of 25750.

2. Sell on the rise near or within the range of 26475--26575 with a stop loss of 26650. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it falls below 25100 and maintain for some time with a stop loss of 25230.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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