A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—26.7.2021

 

CNX--BANK NIFTY

Open-34748.35---High-35088--Low—34404.75---Close-35034.40 on 23.7.2021

Support:34976/34930/34859.90/34635.95/34525.45/34410/34374/34357.35/34322//34287/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

Resistance;35380/35428.15/35491.95/35584.30/35648/35811/35985.25/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

As envisaged it did stage a bounce back from the correction completion range (see my post for 22.7.2021) in the last two days but this was just a pullback move and it is still into very short term correction mode and will get out of it only if it moves and closes above 35490 and sustain. But if it manages to hold the levels of 34740 & 34663 it may be able to cross 35490 levels and can come out of very short term corrective mode. But break below 34663 will push it into, deep short term corrective mode, which may please be noted. Please note that going down it has bed of supports in the range of 34632.60---34525---34410---34374---34322---33908, therefore till it holds this range there is no fear of sharp and consistent decline. It is important to mention here that it has to move above the range of 35648---35811---35980---36248 for steady and strong up momentum, if it moves above 36248 and sustain on the closing basis then it could retest it’s all time high of 37708.75 or may go beyond also otherwise it will start drifting down again. The long term bias still looks positive for the uptrend to continue as of now. The short term outlook has improved in the last two days, but it is still into very short corrective mode, furthermore one very important technical indicator on the daily and weekly chart is still showing weakness and indicates that it could drag it down again if it does not improve in coming days. So watch out and be cautious and careful in your trades.

In view of the above observation, since it is into very short correction mode, for safe traders it is suggested to avoid long trade till it gives visible indication of correction completion or it closes above 35490. However aggressive traders can try long trade if it moves above 35350 and maintain for some time or can try buy on decline at appropriate points or near 34740 but not below it .Please note that long trade in a weak market could be a risky affair. Since it has not yet crossed some of its critical long term averages and the overall short term technical setup is still not great, therefore short trade can also be tried after reasonable rise or can be tried on the price breakdown for taking advantage of the intraday or otherwise 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 35350 and maintain for some time with a stop loss of 35100.It is for the aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 34740 but not below it with a stop loss of 34600. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 35648---35811 with a stop loss of 35890. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell near if it does not move above 35350 in first one and half hour of trade with a stop loss of 35450. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 34660 and maintain for some time with a stop loss of 34760. 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.