A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—17.6.2021

 

CNX--BANK NIFTY

Open-35196.25--High-35380--Low—34916.20--Close-35003.80 on 16.6.2021

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;35380/35428.15/35584.30/35648/35810.90/35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It corrected today and almost wiped out yesterdays gain on the closing basis and closed with a loss of 244.25 points. Please note that after making higher top and bottom on the line chart yesterday, it went below its recent bottom of 34950.60 intraday today but managed to close above it, whereas it should have shown strength but instead it showed weakness which is not a good sign. Kindly note that sustained break below 34950.60 on the closing basis as of now may push it back into very short corrective mode again. It is important to mention here that it will only resume the steady up move 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 36248 level from here it will face critical resistance at 35070---35176---35472---35527---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 34930 will push it into very short correction mode again, sustained break below 34535.26 will 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 positive as of now and short term bias also looks positive 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 has came out of very short corrective mode therefore long trade can be tried if it moves above 35250 and maintain for some time or can buy on decline at appropriate points  or near 34950 but not below it. Although it is making higher top and bottom on the line chart but today’s movement created some doubt in the mind that it may get into corrective mode again, so be cautious in the long trade. Since it has not crossed its critical resistance range as mentioned above, 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 34950 but not below it with a stop loss of 34890. It could be a risky trade.

Or

Buy if it moves above 35250 and maintain for some time with a stop loss of 35150.

2. Sell on the rise near or within the range of 35450---35500 with a stop loss of 35600. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34915 and maintain for some time with a stop loss of 35080. 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.