A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—30.4.2021

 

CNX--BANK NIFTY

Open-33901.60--High-34287--Low—33304.60--Close-33714.50 on 29.4.2021

Support:33625/33306.80/32842.30/32613.10/32465.45/32415.15/32347.20/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05/32260/31015/30915/30870/30843/30669/30648/30540/30338.35/30220.20/29687.70/29612.55/29156/28976.75/28525.45/28388.65/27652/26641—560/26441/25598.

Resistance;33990.80/34287/34360/34430/34658.70/34893/34976/35428.15/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It opened with an up gap and went further up and hit an intraday high of 34287 but could not sustain at the higher level and corrected sharply and hit a  low of 33304.60 for the day and closed with a meager loss of 8.30 points. 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 which is very positive sign for the continuation of the up move. It is important to mention here that its major downtrend line is placed at 34230(this figure will decrease every day) for the day, it did went very close to this line today but retreated from there ,but 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. It did showed huge volatility during the day but 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 had huge rise in the last few days and it took a breather today, but if it fails to give an upside breakout from its major downtrend line in next few days, then it may witness a vertical or moderate fall because weekly technical indicators are still indicating weakness. So be careful in the long trade at this juncture. 

Critical Support points are at :--33625---33371---33195.43---32804---32613.10--32465---32240---32130---31889---31606.

Critical Resistance points are at :--34057---34230---34287---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 . Similarly moving down its important points would be at-33625 & 33371. It is suggested to get alerted in long trade below 33625 and avoid long trade below 33371 for sure for the day. Please note that from here on bias seems moderately positive as of now.

In view of the above observation  long trade can be tried on decline if it holds 33371 levels but not below it or if it moves  above 33725 and sustain for some time. Since it is still into short term  corrective mode  therefore short trade can also be tried after 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 33371 but not below it with a stop loss of 33270.   

Or

Buy if it moves above 33725 and maintain for some time  with a stop loss of 33600.

2. Sell on the rise near or within the range of 34250---34300 with a stop loss of 34350. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it maintains below 33270 for some time with a stop loss of 33380. 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.