Friday, 6 November 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—9.11.2020

 

CNX--BANK NIFTY

Open-26274.10--High-26853.45--Low-26135.30—Close-26798.95 on 6.11.2020

Support: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.

Resistance26950/27164/27589/27754.45/28525.45/29156.25/29435.05/29612.55/30121.75.

(Bold and underlined figures are most important)

It has been continuously rising and showing robust strength, furthermore it has given breakout from the major down trend line drawn from its all time high of 32613.10,which is an extremely positive and bullish sign and if it sustain this breakout then it is heading for a big rise in coming days, but the only concern is that it has not filled the gap it created on 5.11.2020 and if it makes an attempt to fill the gap in next 2-3 days time which is technically possible then it could come down to 25891 which may be kept in mind. However if it does not fill the gap in next 2-3 days then this concern may be over for the time being. Furthermore it has had a vertical rise in the last five days from the level of 24120, so correction is imminent and can happen any time soon. Please note that now its key points are at 26088.60 & 25331.60(figures can change with upward price movement) as long as it holds these key points on the closing basis the ongoing up move will continue off course with intermittent down correction, but sustained break below 26088.60 on the closing basis can push it into short term correction mode and sustained break below 25331.60 can push it into slightly deeper correction. Moving down it may find support at-26665---26492---26311---26088.60---25615---25331---25233---24850---24365---24319.50.  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: - 26950---27164---27589---27755---28216---28525. 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, so be watchful and alert in long trade.

In view of the above observation long trade can be tried, if it moves and maintains above 26855 for some time or on the decline at appropriate points or near 26088.60  but not below it. Please note that long position can be tried above 26088.60 in any case for the day. Since it is in strong 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 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 26088 but not below it with a stop loss of 25950.  

Or

Buy if it maintains above 26855 for some time with a stop loss of 26750.

2. Sell on the rise near or within the range of 27400--27500 with a stop loss of 26600. It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it does not move above 26855 in first hour of trade with a stop loss of 26925.It could be a highly risky trade but worth trying.

Or

Sell if it moves and maintains below 25950 for some time with a stop loss of 26100. It could be a 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.

 

 

No comments:

Post a Comment

Thank you for sharing your views.