A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—9.6.2021

 

CNX--BANK NIFTY

Open-35433.80--High-35449.50--Low—34962.65--Close-35085.30 on 8.6.2021

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

 

Resistance;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 sharply today and closed with a loss of 358.48 points. Furthermore it is making lower top and bottom on the line chart which is a weak sign, so further fall from here cannot be ruled out. However  the technical setup still looks good and 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. Going up from here its critical resistance point would be at 35461---35584.30---35649---35810.90---36248. Similarly moving down its critical support points would be at 35070.30---34930.10---34535.26(this figure can change)—33625 & 33273,  sustained break below 34930.10 will trigger the fall for the day, sustained break below 34535.26 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. The long term bias is still positive as of now but it looks dicey at this point of time; therefore the chances are that the down correction may last few 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, it is suggested to try long trade only if it closes above 35461 or maintain above it for some time else avoid. However aggressive traders can try long trade if it moves above 35461 and maintain for some time or can try buy on decline at appropriate points but not below 34930. Please note that since it is making lower top and bottom on the line chart therefore buying on decline could be a risky trade till it starts making higher top and bottom. 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 near 34930 but not below it with a stop loss of 34850. It is for aggressive traders and it could be a highly risky trade.

Or

Buy if it moves above 35461 and maintain for some time with a stop loss of 35280. It is for both the traders and could be a risky trade.

2. Sell on the rise near or within the range of 35600---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 34930 and maintain for some time with a stop loss of 35070. It could be a highly risky trade but worth trying.

Or

Sell if does not move above 35461 with a stop loss of 35540.

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.