A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—29.4.2021

 

CNX--BANK NIFTY

Open-32865.50--High-33777.30--Low—32840.30--Close-33722.30 on 28.4.2021

Support:33306.80/32842.30/32613.10/32465.45/32415.15/32347.20/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05/32260/31015/30915/30870/30843/30669/30648/30540/30338.35/30220.20/29687.70/29612.55/29156/28976.75/28525.45/28388.65/27652/26641—560/26441/25598.

Resistance;33990.80/34360/34430/34658.70/34893/34976/35428.15/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It continued the upsurge for the 3^rd strait day and closed with a robust gain of 987.45 points.

It has moved above its medium term correction mode threshold point of 33625 today which is very positive sign but it is still into short term correction mode ,however it is improving on the technical chart as it is well above its short ,medium and long term averages and way  above its short term downtrend trend-line also all these developments are hugely positive sign for the continuation of the up move. It is important to mention here that its major downtrend line is placed at 34340(this figure will decrease every day) for the day and the way it is exhibiting strength it is very likely at this point of time that it may give an upside breakout  from this line in coming days and if it  does and sustain above  it then it may head for a big rise which may please be noted. Looking at the current technical setup further rise seems quite possible  from here as of now but intermittent down move also may happen. I would like to give a word of caution here that is has been vertically rising for the last three days ,so be alert also, it may have a vertical fall too because weekly technical indicators are still indicating weakness. So be careful in the long trade at this juncture.

Critical Support points are at :--33625---33195---32982---32613.10--32465---32240---32130---31889---31606.

Critical Resistance points are at :--34057---34340---34919---35430---35985---36248.

Kindly note that the on-going up move is a pullback rally and it may exhaust at any of these points  or earlier also but the way it is showing strength and if it continues like this for few days then it could resume the strong up momentum again provided it clears the hurdle mentioned above and sustain above it . Similarly moving down its important point for the day would be at-33625 & 32982. Please note that from here on bias seems moderately positive as of now.

In view of the above observation for safe traders long trade can be tried if it holds 33625 levels or can buy if it moves above 33780 and sustain for some time. However aggressive traders can try buy on decline at appropriate points or near 32982 but not below it or can buy if it moves above 33780 and sustain for some time. Since it is still into short term  corrective mode  therefore short trade can also be tried on the reasonable rise  or can be tried on the price breakdown for taking advantage of the down move.

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 if it manages to hold 33625 but not below it with a stop loss of 33500.   

Or

Buy if it moves above 33780 and maintain for some time  with a stop loss of 33600.

Or

Buy on decline at appropriate points of near 32982 but not below it with a stop loss of 32830. It is for aggrressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 34350---34450 with a stop loss of 34550. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it maintains below 32830 for some time with a stop loss of 33000. It could be a risky trade but worth trying for intraday gain.

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.