A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—4.6.2021

 

CNX--BANK NIFTY

Open-35536.45--High-35723.70--Low—35413--Close-35649 on 3.6.2021

Support:35648/35428.15/34976/34893/34658.70/34430/34360/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.

Resistance;35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It gave a good up move today and closed with a gain of 275.25 points. Furthermore the technical setup is in all favor of the continuation of the up move but off course with intermittent down correction. Please note that it has to cross the range of 35648---36248 which is essential for the steady up move to continue and if it does not happen fast then it may correct sharply from here, luckily it has just gotten into this range bracket today. 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 moving down its critical support points would be at 35584.30---35337.30---34468(this figure can change)—33625 & 33273, sustained break below 35584.30 on the closing basis will be an alert sign, sustained break below 35337.30 will indicate that it could fall sharply, sustained break below 34468 can push it into short term corrective mode and break below 33625 & 33273 could further 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 in the long trade below 35337.30 at this point of time. 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 35724 and maintain for some time or can be tried on decline at appropriate points or near 35337.30 but not below it. However aggressive traders can try long trade if it moves above 35724 and maintain for some time or can try buy on decline at appropriate points but not below 34468. Please note that buying on decline below 35337.30 could be a risky trade because if it moves and sustain below it for the longer time during the day then it could correct sharply. 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 34468 but not below it with a stop loss of 34350. It is for aggressive traders and it could be a highly risky trade.

Or

Buy if it moves above 35724 and maintain for some time with a stop loss of 35570. It is for both the traders.

Or

Buy on decline at appropriate points or near 35337 but not below it with a stop loss of 35200. It is for both the  traders.

2. Sell on the rise near or within the range of 36150---36250 with a stop loss of 36350. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 35337 and maintain for some time with a stop loss of 35450. It could be a highly risky trade but worth trying.

Or

Sell if it does not move above 35724 in first hour of trade with a stop loss of 35800. 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.