A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—16.7.2021

 

CNX--BANK NIFTY

Open-35585.85---High-35804.05--Low—35434.75--Close-35668.25 on 15.7.2021

Support:35811/35648/35584.30/35491.95/35428.15/35380/34976/34930/34894.45/34635.95/34525.45/34410/34374/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

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

(Bold and underlined figures are most important) 

It crossed its first important resistance point of 35811 today which is a good sign and if it remains above it then it will gain strength but for the steady and strong up momentum it has 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. Moving down its critical support points would be at 35811---35648 and then very good support range of 34860---34632---34525---34374---33908, therefore till it holds this range there is no fear of sharp decline. Please note that break below 35811 would be an alert sign and break below 35648 could weaken it and could drag it down towards support points range. The long term bias still looks positive for the uptrend to continue as of now. The short term outlook is improving but still looking dicey as of now because one very important technical indicator on the weekly chart is showing weakness and if it does not improve fear of fall will always be there. The undertone is bullish, but be cautious.

In view of the above observation, long trade can be tried if it holds 35811 or if it moves above 35990 and maintain for some time or can buy on decline at appropriate points or near 35648 but not below it. However aggressive traders   can also try long trade on decline at appropriate points or near 35300 but not below it. Please note that long trade below 35648 could be a risky affair for the day mind you. Since it has not crossed its 2^nd critical point of 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 holds above 35811 with a stop loss of 35750.It is for both the traders and could be a risky trade.

Or

Buy if it moves above 35990 and maintain for some time with a stop loss of 35880. It is for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 35648 but not below it with a stop loss of 35500. It is for both the traders and could be a risky trade but worth trying.

Or

Buy on decline at appropriate points or near 35300 but not below it with a stop loss of 35100. 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 36250---36300 with a stop loss of 36350. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 35990 in first one and half hour of trade even intraday with a stop loss of 36070 .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 35624 and maintain for some time with a stop loss of 35725. 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.