A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—7.7.2021

 

CNX--BANK NIFTY

Open-35173.60---High-35807.45--Low—35165.55--Close-35579.15 on 6.7.2021

Support: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;35584.30/35648/35810.90/35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It continued the up move today also and closed with a gain of 367.15 points. It did get within its critical range of 35648---36248 intraday today but could not sustain and finally closed below it, furthermore it made double top today, which is slightly concerning, so now if it fails to move above 35811 and sustain on the closing basis then the up move may be in jeopardy. It is needless to mention here that for the steady up move 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. Therefore as of now 35811 &36248 levels are the important benchmark points and it has to cross both and sustain on the closing basis to move up smoothly, else it may drift down eventually. So moving up from here the critical resistance points would be at 35648---35811---35985---36248---36328---36537---36939---37100---37708.75.  Similarly going down its important support points could be at 35359.40---34950(it may change every day)---34632.60---34535.26---33908.95, please note that break below 35359.40 on the closing basis could push it into very short correction mode which may last for 2-3 days, sustained break below 34950 may weaken it further ,sustained break below 34632.90 could be the last alert point, sustained break below 34535.26 will push it into deep short term correction mode which may last for 5-8 days or more and finally sustained break below 33908.95 could accelerate the fall further. The long term bias still looks positive as of now. But the short term outlook still looks dicey. So watch out.

In view of the above observation, long trade can be tried if it moves 35580 and maintain for some time or can try long trade on decline near 35360 but not below it. However aggressive traders can try long trade on decline at appropriate points or near 35100 but not below it.  Since it has not crossed its critical resistance range of 35648---36248, 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 35580 and maintain for some time with a stop loss of 35450.It is for the aggressive traders and could be a risky trade.

Or

Buy on decline near 35360 but not below it with a stop loss of 35140. It is for the safe traders.

Or

Buy on decline at appropriate points or near 35100 but not below it with a stop loss of 34920. It is for the aggressive traders and could be a risky trade.

2. Sell on the rise near or within the range of 35850---35900 with a stop loss of 35950. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 35550 and maintain for some time with a stop loss of 35630. 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.