A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—11.6.2021

 

CNX--BANK NIFTY

Open-34903.60--High-35165.65--Low—34734.40--Close-35131.20 on 10.6.2021

Support:34976/34930/34893/34658.70/34641/34430/34360/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.

 

Resistance;35428.15/35584.30/35648/35810.90/35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

After two days of fall it bounced back sharply today and closed with a gain of 330.69 points. It is still into very short corrective mode and can only give sign of coming out of it if it closes above 35444 and then moving down does not break 34800 on the closing basis else correction will continue. It is important to mention here that it may resume the steady up move only once it crosses its critical range of 35648---36248 and sustain above it on the closing basis, else down move may continue. Please note that if it sustain above 36248 on the closing basis then it could retest its all-time high of 37708.75 or may go beyond also. Going up from here its critical resistance point would be at 35176---35461---35584.30---35649---35810.90---36248. Similarly moving down its critical support points would be at 34930---34641.20---34535.26(this figure can change)—34410---33625 & 33273,  sustained break below 34535.26 can push it into deep short term corrective mode, sustained break below 34410 will accelerate the down move and sustained break below 33625 & 33273 could deepen the correction further. The other critical support points are at 34287---34249.33---33625---33334---33273---33130---32921.15---32613---32465. The long term bias is still positive as of now but it is into very short term corrective phase and it may last for few days. Therefore short term bias negative 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, since it is into very short term correction therefore it is suggested to avoid long trade in general till clarity on correction completion emerges.  However aggressive traders can try long trade if it moves above 35176 and maintain for some time or can try buy on decline at appropriate points but not below 34800. Please note that buying on decline below 34800 could be a risky affair because if it sustains below it for longer time during the day then it could further correct sharply. Since it has not crossed its critical resistance range as mentioned above and into very short correction mode, therefore short trade should be tried after the reasonable rise or can be tried on the price breakdown for taking advantage of the corrective 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 near 34800 but not below it with a stop loss of 34640. It is for aggressive traders and could be a highly risky trade.

Or

Buy if it moves above 35176 and maintain for some time with a stop loss of 35020. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 35550---35650 with a stop loss of 35725. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 35000 and maintain for some time with a stop loss of 35150. It could be a highly 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.