A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—24.5.2021

 

CNX--BANK NIFTY

Open-33559.80--High-34694.45--Low—33559.75--Close-34606.90 on 21.5.2021

Support:34430/34360/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.

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

(Bold and underlined figures are most important) 

Further to my last post for 6.5.2021 it did not violate the critical points for the year 2021 (see my post for 6.5.2021) therefore it moved in a range for few days and gave upside breakout from the downtrend line on 18.5.2021 and still holding it, which is a positive sign. Furthermore overall technical setup looks o.k. therefore it is likely to move up in coming days and moving up it will face stiff resistance at 34919---35648---35985---36248 the up move may exhaust at any of these points, so be watchful, but if it moves above 36248 and sustain on the closing basis then it can retest its all-time high of 37708.75 or may go beyond also. Similarly moving down it will find good support at 33625---33273.95---33130---32613---32465, please be alert in the long trade below 33625 and exit long position below 33273 because it may trigger moderate to sharp fall if it sustains below 33273. Kindly note that some technical indicators on the weekly chart are still weak and it is critically poised at this point of time, so be alert and vigilant particularly in the long trade now. The bias is up as of now.         

In view of the above observation long trade can be tried if it moves above 34695 and maintain for some time or can be tried on decline at appropriate points but not below 33273. Since it is still into short term correction 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 at appropriate points with self defined short stop loss or near 33335--33273 but not below it with a stop loss of 33000. It could be a risky trade.

Or

Buy if it moves and maintains above 34695 for some time with a stop loss of 34550. 

2. Sell on the rise near or within the range of 35250---35350 with a stop loss of 35450. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 34695 in first hour of trade with a stop loss of 34800. 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.