A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—28.6.2021

 

CNX--BANK NIFTY

Open-34916.65--High-35491.95--Low—34915.85--Close-35378.75 on 25.6.2021

Support:34976/34930/34893.25//34641/34525.45/34410/34374/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.

 

Resistance;35380/35428.15/35491.95/35584.30/35648/35810.90/35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It showed tremendous strength today and closed with a robust gain of 551.75 points. It is making higher bottom and top on the line chart now and also crossed its recent top of 35281.90 on the bar chart which is good sign. Furthermore it has bounced back above its short term rising trend line and decisively above its short term moving averages also all these are hugely positive indication for the up move to continue. 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 will resume again. 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. Moving up from here it will face critical resistance at 35491.95---35648---35810.90---35985---36248---36328---36537---36939---37100---37708.75. Similarly moving down its important support points would be at 34525.45---34374.35---33908.95---33625---33273. The long term bias is positive as of now and short term outlook has drastically improved with today’s price movement. But be vigilant for the next 3-4 trading sessions and see whether it sustains today’s upsurge or not. 

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 and maintain above 35492 for some time avoid buy on decline for the day. However aggressive traders can also try long trade on decline at appropriate points or near 34900 but not below it. Please note that long trade below 35320 could be a slightly risky trade. Since it has not crossed its critical resistance range of 35648---36248, 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 at appropriate point or near 34900 but not below it with a stop loss of 34800. It is for the aggressive traders and could be a highly risky trade.

Or

Buy if it moves above 35492 and maintain for some time with a stop loss of 35300. It is for the aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 35950---36100 with a stop loss of 36250. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34900 and maintain for some time with a stop loss of 35080. It could be a risky trade but worth trying.

Or

Sell near if it does not move above 35585 in first one and half hour of trade with a stop loss of 35685. 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.