A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—6.5.2021

 

CNX--BANK NIFTY

Open-32577.10--High-32862.15--Low—32068.55--Close-32783.70 on 5.5.2021

Support:32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05/32260/31015/30915/30870/30843/30669/30648/30540/30338.35/30220.20/29687.70/29612.55/29156/28976.75/28525.45/28388.65/27652/26641—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 opened with an up gap and went up further and ended the day slightly below the high of the of the day with a good gain of 513.35 points. But it is still into medium term correction mode. However today it moved above  its most critical and important point of 32613.10 & 32465.45 for the year 2021  , please note that 32613.10 is  its threshold point also for the long term correction mode which is a positive sign. Furthermore it is well above its pullback threshold point of 32130 and as long as it hold this point on the closing basis there is  hope that it may continue the pullback rally for few days, but sustain break below this point could trigger  steady down move, which may please be kept in mind. It is important to mention here that its long term downtrend line is placed at 33950 (this figure will decrease every day) for the day and  sustained upside breakout from this line will somewhat ensure the strong up momentum. The   range for the day is 32613.10---32465.45---32130 on the closing basis. Please note that since it closed above the range upper band of 32613.10 today and if it sustains above it on the closing basis then it could give reasonable to good up move from here. Similarly sustained close below 32613.10 & 32465.45 will indicate distinct weakness in it and sustained close below 32130 may accelerate the fall which may be kept in mind.

Critical Support points are at: 32613.10---32465.45---32346---32130---31889---31606---31297---31264.

Critical Resistance points are at:--32816---33097---33195.43—33371---33625---33950---34057---34170---34287---34919---35430---35985---36248.

Kindly note that the on-going price movement is within the pullback range and as long as it holds the long term pullback threshold point of 32130 chances of up move shall remain. 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 as of now. 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 for safe traders long trade can  be tried if it holds 32613.10 but not below it or if it maintains above 32782 for some time. However aggressive traders can also try buy on decline at appropriate points or near 32130 but not below it. I once again reiterate that  long trade below 32613.10  could be a risky affair mind you.  Since it is into medium 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 till clarity on correction completion emerges.

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

Or

Buy if it maintains above 32782 for some time with a stop loss of 32600. 

Or

Buy on decline near 32613.10 but not below it with a stop loss of 32440. It is for safe traders.

2. Sell on the rise near or within the range of 33435---33625 with a stop loss of 33700 . It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 32440 and maintain for some time with a stop loss of 32620. 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.