A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—3.5.2021

 

CNX--BANK NIFTY

Open-33112.40--High-33455.25--Low—32663.40--Close-32781.80 on 30.4.2021

Support: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;32842.30/33306.80/33371/33625/33990.80/34287/34360/34430/34658.70/34893/34976/35428.15/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

It gave a severe jolt to the on-going up move with a sharp  down move today, which was somewhat anticipated and I cautioned you also about it because it happens in the pullback rallies and finally it closed near the lower end of the day with a huge loss of 932.69 points. Todays move has shattered the technical setup  to some extent and it has slipped into medium term correction mode again, which is a weak sign,  but it is still well above its short downtrend line and above its major key points of 32613.10 & 32465.45 for the year and well above its pullback threshold point of 32130, which still gives some hope that if it maintains above these points then it can resume the up move again, because some technical indicators on the daily chart are also positive as of now. But sustained break below the aforesaid mentioned points can begin the down move again. It is important to mention here that its long term downtrend line is placed at 34170 (this figure will decrease every day) for the day and  sustained upside breakout from this line will ensure strong up momentum, so the range for now is 32613.10---34170.  Therefore it is suggested to trade the range till either side breakout happens.It seems that it is at the make or break juncture at this point of time ,therefore one has to be very careful in their trades, particularly in the long trades.  

Critical Support points are at :32613.10---32465---32346---32130---31889---31606---31297---31264.

Critical Resistance points are at :--32804---33195.43—33371---33625----34057---34170---34287---34919---35430---35985---36248.

Kindly note that the todays down move was a correction within the pullback range and as long as it holds the pullback threshold point of 32130 chances of up move shall reamin ,but I caution you here that long trade below the key points of 32613.10 & 32465.45 could be a highly risky proposition which may please be noted. Please note that from here bias seems mixed but with a slight tilt towards downside. It is important to mention here that technical indicators on the weekly chart are giving indication that major fall cannot be ruled out in coming days if these indicators does not improve fast.

In view of the above observation  long trade can be tried on decline if it holds the range of 32613.10 & 32465.45  but not below it or if it moves  above 33371 and sustain for some time. However aggressive traders can buy on decline at appropriate points or near 32130 but not below it, but this could be a highly risky trade mind you.  Since it has slipped into medium  term  corrective mode today  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 32613.10 & 32465.45 but not below it with a stop loss of 32350.   

Or

Buy if it moves above 33371 and maintain for some time  with a stop loss of 33200. 

Or

Buy on decline near 32130 but not below it with a stop loss of 32000.It is for aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 33375---33475 with a stop loss of 33575. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 32465  and maintai for some time with a stop loss of 32665. 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.