A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—15.7.2021

 

CNX--BANK NIFTY

Open-35585.85---High-35804.05--Low—35434.75--Close-35668.25 on 14.7.2021

Support:35648/35584.30/35491.95/35428.15/35380/34976/34930/34894.45/34635.95/34525.45/34410/34374/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

Resistance;35811/35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

It corrected very mildly today and closed with a meager loss of 5.15 points. It tried for the fifth time today in last 28 trading sessions to cross its first important hurdle of 35811 but could not which is slightly weak sign, furthermore one most important and critical technical indicator is showing weakness on the weekly chart as of now, which indicates that it could drag it down in coming weeks if it does not improve. But most importantly it has bed of strong support in the range of 34860---34632---34525---34374---33908, therefore till it holds this range there is no fear of sharp decline and it may bounce back also and it did bounce back . But moving up the range of 35811---36248 is very tough and critical range to cross at this point of time. However if it crosses 35811 and sustain on the closing basis then it will gain good strength but for the steady and strong up momentum it has to move above 36248 and sustain on the closing basis then it could retest its all-time high of 37708.75 or may go beyond also. The long term bias still looks positive as of now. But the short term outlook looks slightly dicey and weak. So watch out. The above observation will hold till it gives either side breakout i.e. either above 36248 or below 33908. It is therefore suggested to trade the range of 36248---33908 at appropriate points for both long and short trade till break out happen. Please note that the upside breakout from 35811 & 36248 should happen quickly may be in next 4-5 trading session at the most, but sooner the better and sustain else it will lose steam and may head downside.

In view of the above observation, for safe traders long trade can be tried if it moves above 35811 and maintain for some time and avoid buy on decline now. However aggressive traders   can also try long trade on decline at appropriate points or near 35070 but not below it. Please note that long trade on decline could be a risky affair for the day.  Since it has not crossed its critical resistance range of 35811---36248 and some long term parameters, therefore short trade can also 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 35811 and maintain for some time with a stop loss of 35650.It is for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 35070 but not below it with a stop loss of 34830. It is for aggressive traders and could be a highly risky trade but worth trying.

2. Sell on the rise near or within the range of 36175---36250 with a stop loss of 36300. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 35811 in first one and half hour of trade with a stop loss of 35950 .It could be a risky trade but worth trying.

Or

Sell if it moves below 35060 and maintain for some time with a stop loss of 35240. It is for the aggressive traders could be a highly risky trade but worth trying.

Or

Sell if it moves below 34840 and maintain for some time with a stop loss of 35000. 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.