Saturday, 29 May 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—31.5.2021

 

CNX--BANK NIFTY

Open-35345.65--High-35436.65--Low—34977.20--Close-35141.45 on 28.5.2021

Support:34976/34893/34658.70/34430/34360/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.

Resistance;35428.15/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

It has been moving up and showing good technical strength, which is positive sign for the continuation of the up move, but moving up the range of 35648---36248 seems tough range to cross. However 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 it also. Similarly sustained break below 34249.33(this figure can change) can push it into short corrective mode and break below 33625 & 33273 could deepen the correction. The other critical support points are at 34662---34410.40---34287---34249.33---33625---33334---33273---33130---32921.15---32613---32465. The technical setup is good for the up move but for sustained up move it has to move above 36248 and sustain on the closing basis, else it may correct. It is therefore suggested to be alert in long trade below 34410 and exit trade below 34249 for sure. It is important to mention here that some technical indicators on the weekly chart are improving but it is still weak which is pointing that it could trigger down move if it does not become positive in coming weeks, so one should be alert and vigilant particularly in the long trade at this point of time. The bias is up as of now.

In view of the above observation long trade can be tried if it moves above 35437 and maintain for some time or can buy on decline also at appropriate points but not below 34410. Please note that long trade could be a risky affair at this juncture particularly buying on decline. Since it has not crossed its critical resistance range as mentioned above, 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 34410 but not below it with a stop loss of 34200. It is for aggressive traders and could be a highly risky trade.   

Or

Buy if it moves above 35437 and maintain for some time with a stop loss of 35300. It could be a risky trade.

2. Sell on the rise near or within the range of 35600---35700 with a stop loss of 35800. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34410 and maintain for some time with a stop loss of 34550. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34660 and maintain for some time with a stop loss of 34800. It is for highly aggressive traders and could be a risky bet.

Or

Sell if it does not move above 35437 in first hour of trade with a stop loss of 35480. It could be a risky trade.

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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