A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—2.6.2021

 

CNX--BANK NIFTY

Open-35639.75--High-35713.90--Low—35241.20--Close-35337.20 on 1.6.2021

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;35428.15/35648/37713.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

It is showing technical strength which is good for the continuation of the up move but with intermittent correction. It corrected today and closed with a loss of 189.44 points the correction may last for 1-2 days more. Please note that it has to cross the range of 35648---36248 which are essential for steady up move to continue and if it does not happen fast then it may correct sharply from here. Kindly, 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 34461(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. It is therefore suggested to be alert at this point of time in the long trade below 34461(this figure can change) and exit trade below 34410 for sure. The bias is up as of now.

It is important to mention here that technically this on-going uptrend is showing enough strength and looking good for the continuation of the up move but this up rally is not in sync with the fundamentals and you are well aware that it is the fundamentals which eventually hold the Priceline. Therefore this on-going up rally may deceive you at any point of time, so be alert and careful in long trade henceforth.   

In view of the above observation for safe traders 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 34461. However aggressive trader can also try long trade if it moves above 35530 and maintain for some time. 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 34461 but not below it with a stop loss of 34300. It is for safe and aggressive traders both. It could be a risky trade.

Or

Buy if it moves above 35585 and maintain for some time with a stop loss of 35440. It is for safe trader.

Or

Buy if it moves above 35530 and maintain for some time with a stop loss of 35440. It is for safe trader.

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 does not move above 35436 in first hour trade with a stop loss of 35540. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 35240 and maintain for some time with a stop loss of 35350. It is for highly aggressive traders and could be a risky bet.

Or

Sell if it does not move above 35585 in first hour 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.