A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—30.6.2021

 

CNX--BANK NIFTY

Open-35320.45--High-35337.45--Low—34913.70--Close-35010.30 on 29.6.2021

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)

As anticipated it could not build up on the upsurge it had on 25.6.2021 and moved down today and closed with a loss of 349.15 points. It has broken its short term rising trend line again which is a weak indication, however as long as it holds 34875 (figures can change) it could still consolidate and move up again but break below it on the closing basis could weaken it and finally break below 34525 on the closing basis could push it into short correction mode. 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 resume again. Please note that if it moves and 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 35380---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 improved but still looks slightly dicey, so watch out carefully for the next 1-2 days. 

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 if it moves above 35380 and maintain for some time or on decline near 34875 but not below it. Please note that long trade below 34875 could be a risky trade for the day. Since it has not crossed its critical resistance range of 35648---36248 and broken the rising trend line also, 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 if it moves above 35380 and maintain for some time with a stop loss of 35200.It is for the aggressive traders and could be a risky trade.

Or

Buy on decline near 34875 but not below it with a stop loss of 34730. It is for the aggressive traders and could be a risky trade.

Or

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

2. Sell on the rise near or within the range of 35585---35650 with a stop loss of 35750. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34870 and maintain for some time with a stop loss of 35040. It could be a risky trade but worth trying.

Or

Sell if it does not move above 35340 in first one and half hour of trade with a stop loss of 15440. 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.