CNX--BANK NIFTY
Open-18795.10--High-18795.10--Low-17514.20—Close-17573.20 on
18.5.2020
Support:17497/17380/17286.40/17248.42/17143/16635/16450/16193.25/16116.25/15850/15440/15162.
Resistance:18175/18287/18565.06/18703.45/18941/19051/19200/19350/19460/19585/19680/19825/19934/20010.
(Bold and
underlined figures are most important)
It opened on a flat to negative note today at 18795.10 and the
open was high also for the day, then it plummeted and made a low of 17514.20 in
the late afternoon and closed the day near the low at 17573.20 with a colossal
loss of 1260.75 points.
It has been showing extreme
weakness for quite some time and today was no exception, it broke its first
support range effortlessly and decisively, but it took support near its second range
last point at 17400 (see my post of 18.5.2020) The fall was huge but since it
took support on the second range last point, so it may stage a short up move
from here before finally breaking this point. Moving down the support ranges
for now is mentioned hereunder.
1. 17400----17286---17248----17143---sustained
break below 17143 will accelerate the fall.
2. 16635---16450---16193----16116.
3. since it has been
running far below its most critical point of 20010 for quite some time, therefore
it is very likely that it could retest its bottom of 16116.25 made on 24.3.2020
in coming days/weeks. Furthermore if it sustain below 17248 then it will
definitely break the bottom of 16116.25 and open the downside up to 13407 levels
which may please be noted. So the bench mark point for now is 17248.
In case it gives move up it will face stiff resistance in the
range mentioned hereunder.
1. 18175---18287---18565.06—sustained
close above 18565.06 may take it little higher.
2. 18840----19215---sustained close above 19215 will give some strength for
the up move.
The trend is down and in view of
today’s huge down move, it is not likely to move up beyond the range of 18175---18565---18840
on the intraday basis in case of pullback rally, therefore any up move should
be utilised for selling till it closes above its critical points of 18565.06. Therefore it is strongly advised to
avoid long trade completely as of now.
TRADING STARTAGY
1. Sell on the rise in the
range of 18175---18287---18565---18840 with a stop loss of above 19200. Kindly
note that the self defined stop losses can be applied by the traders but the
authentic stop loss would be 19200 only.
Or
Sell below 17248 with a
stop loss of above 17425. This is a short
stop loss and possibly it
could be triggered one or two times, but
one has to initiate short
position again below 17248 for the
day.
Remark: - The long term trend
is down. It looks extremely weak technically and there was a complete breakdown
today, therefore long trade should be completely avoided and should be reviewed
only if it closes above its critical point of 18565.06. It is suggested to
adopt sell on the rise strategy or sell on the price breakdown as suggested
above. The long term bias is hugely bearish.
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 favourable 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.
