A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—26.4.2021

 

CNX--BANK NIFTY

Open-31490.60--High-32148.40--Low—31377.15--Close-31722.30 on 23.4.2021

Support:31661/31649.49/31297.30/31264.05/32260/31015/30915/30870/30843/30669/30648/30540/30338.35/30220.20/29687.70/29612.55/29156/28976.75/28525.45/28388.65/27652/26641—560/26441/25598.

Resistance;31783.60/32157.05/32347.20/32415.15/32465.45/32613.10/32842.30/33306.80/33990.80/34360/34430/34658.70.

(Bold and underlined figures are most important)

After decent recovery on 22.4.2021 it ended the day today with a meager loss of 60.29 points. Its overall technical setup is tremendously weak but very short term technical parameters and some technical indicators are pointing that it may give some rise from here,which may please be noted. Its critical and most important points for the year 2021 are placed at- 32613.10---32465.45---31297.30 & 31264.05 and it is way below its first two points but above its last two points, even if it holds last two points then chances are that it could stage a moderate short term recovery, furthermore it is way below all its other key points which are placed at-36063.50---35815.75---35648---33625---32612.92(figures can change) which is hugely negative sign. Please note that it slipped into long term correction mode on 9-4-2021 and it could only come out of it if it moves above 32613.10 and sustain on the closing basis else it will drift downward in coming days and down move could be very painful price-wise and time wise both and most importantly it can potentially threaten the long term uptrend, which may please be noted. 

It is into long term correction mode for last few days. I once again reiterate here that its overall technical setup is extremely weak, but short term technical parameters and some technical indicators are showing some sign of improvement , so a rise form here cannot be ruled out before it resume the down move again, provided it holds its two tier critical support range of 31300---31260---31112---31000 and then 30915---30540 , please note that sustained break below the above mentioned range on the closing basis could trigger an accellerated fall. Similarly moving up its very critical resistance range  would be between 32130---32465---32613.10, if it moves and closes above 32130 then it could give moderate to reasonable up move and if it moves and sustain above 32613.10 on the closing basis then that would be a positive indication for resumption of strong up momentum again and it could extend the up move then, which may please be noted. Please note that if it remains below  the above mentioned support range on the closing basis then it is very likely to hit 28000---27000 levels or much below it on the downside in coming days.

In view of the above observation, it is into long term correction mode, but short term tercnical parameters and indicatorts are showing some positive sign therefore long trade can be tried on decline at appropriate points or near but not below 31112 and then within the range of 30915—30540 but not below it or buy if it moves and sustain above 32130 for some time.  Please note that long trade in long term corrective mode could be a very risky proposition, particulary buying on decline, but since chances of some rise seems quite bright at this point of time ,so one can try. Since it is into long term corrective mode therefore it is suggested to try sell trade on the rise  or sell on the price breakdown for taking advantage of the down move till clarity on correction completion emerges.

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(Suggested)

1. Buy on decline at appropriate points  or near 31112 but not below it with a stop loss of 30980. It could be a highly risky trade.  

Or

Buy on decline  within the range of 30900---30540  but not below it with a stop loss of 30350. It could be a highly risky trade.  

Or

Buy if it moves and sustain above 32130 for some time with a stop loss of 32000. It could be a risky trade.   

2. Sell on the rise near or within the range of 32400---32550 with a stop loss of 32650. It could be a risky trade but worth trying for intraday gain in weak market.

Or

Sell if it maintains below 31112 for some time with a stop loss of 31300. It could be a risky trade but worth trying for intraday gain in weak market.

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.