Wednesday, 7 April 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—7.4.2021

 

CNX--BANK NIFTY

Open-32915.65--High-33007.65--Low—32338.40--Close-32501.35 on 6.4.2021

Support:32465/32415/32330.15/31725.85/31650.90/31510.25/31297/31264/30945.20/30893.65/30197.85/29687.70

Resistance;32613.10/32718.75/32842.30/33361/33600/33625/34360.05/34568/34658.70/34803.60/34893.25/34973/35428.15/35584.60/35648/35815.75/35884/36086/36397/36455/36466/36477/36615.20/36647/36897/37170/37284/37708.25/38286/38520.

(Bold and underlined figures are most important)

It is on an extremely weak technical footing, furthermore it has closed below its first critical point for the year 32613.10 today and below all its key points which is very concerning, if it does not bounce back sharply in next 2-3 days down move is likely to continue. Please note that its critical and most important points for the year 2021 are 32613.10---32465.45---31297.30 & 31264.05 and it is below its first point which is a very weak sign, please note that to remain in uptrend it  has to remain above these points. Its other key points are placed at 36063.50---35815.75---35648---33625---32612.92(figures can change). It is decisively below its first 3 key points of 36063.50---35815.75 & 35648 for last few days so it is already into deep short term corrective mode, it has decisively broken its 4th key point of 33625 on 5.4.2021 so it has slipped into medium term correction mode, furthermore it has broken its last key point of 32612.92 today so it has slipped into long term correction mode and if it remains below it then correction could last much longer and could be painful too and most importantly can potentially threaten the uptrend also which may please be noted. 

It was into deep short term correction mode, it slipped into medium term correction mode on 5.4.2021 and finally it has slipped into long term correction mode on 6.4.2021 and if it sustains below 32612.92 on the closing basis then it could move down in an accelerated pace, which may be kept in mind. Furthermore it is well below its short and medium term moving averages and some long term technical parameters also and most importantly it has decisively broken its long term rising trend line on 24-3-2021, which indicates that further fall looks inevitable but with intermittent short relief rallies in coming days, provided it does not bounce back sharply and move above some of its key points in next few days, chances of happening this seems less likely at this point of time. Please note that its pullback threshold point is at 33600(figure can change), so if it moves it and sustain on the closing basis then only it could show some up move else it will drift down. Going up it will face resistance at-32613.10---32842.30---33600---33625---33991---34360.05---34438---34658.70---35062---35687---35815.75---36460---36650levels. Please note that it may rise from here but a significant rise is not likely at this point of time and if it remains below 32612.92 then it is very likely to hit 30500—30000 level on the downside in coming days. Similarly going down it can find support at-32465.45---32415.25---32330---31725---31650---31297---31264. Kindly, note that the short term technical setup and parameters are tremendously weak. Therefore short term bias is negative as of now, but the long term bias is still up as of now.

In view of the above observation, it has slipped into long term correction therefore for safe trader long trade in general should be avoided till it gives visible indication of correction completion. However the traders who wish to take advantage of the in between up rally can try long trade if it holds 32415---32330 range or can try if it moves and sustain above 32613.10 for some time. Please note that long trade in long term corrective mode could be a very risky propositions. Since it is into long term corrective mode therefore adopt sell on the rise strategy e or sell on the price breakdown for taking advantage of the down move till clarity on correction completion emerges. Short trade should be tried but with extreme alertness and caution because the long term technical setup still seems o.k. as of now.

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 in the range of 32415---32330 with a stop loss of 32230. It could be a highly risky trade.

Or

Buy if it moves and maintain above 32613.10 for some time with a stop loss of 32480. It could be a highly risky trade.

2. Sell if it remains below 32330 for some time with a stop loss of 32510. It could be a risky trade but worth trying for intraday gain in weak market.

Or

Sell on the rise near or within the range of 33100---33300 with a stop loss of 33400. It could be a risky trade but worth trying for intraday gain in corrective 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.

 

 

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