A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—1.6.2021

 

CNX--BANK NIFTY

Open-35097.45--High-35584.30--Low—34930.10--Close-35526.65 on 31.5.2021

Support:35428.15/34976/34893/34658.70/34430/34360/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.

Resistance;35648/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

It is gaining strength technically which is good for the continuation of the up move, but it has not yet crossed the range of 35648---36248 which is essential for the up move to continue. Please note that 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 34362.14(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 the steady 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 at this point of time in the long trade below 34410 and exit trade below 34362 (this figure can change) for sure. The bias is up as of now.

In view of the above observation long trade can be tried if it moves above 35585 and maintain for some time or can buy on decline at appropriate points but not below 34410. Please note that long trade could be a risky affair at this juncture particularly buying on decline for the day. 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 34250. It could be a risky trade for the day.   

Or

Buy if it moves above 35585 and maintain for some time with a stop loss of 35450. It could be a risky trade.

2. Sell on the rise near or within the range of 36100---36250 with a stop loss of 36350. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 35436 and maintain for some time with a stop loss of 35540. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34930 and maintain for some time with a stop loss of 35110. It is for highly aggressive traders and could be a risky bet.

Or

Sell if it does not move above 35585 in first hour and half of trade with a stop loss of 35685. It could be a risky trade but worth trying.

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.