A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—9.7.2021

 

CNX--BANK NIFTY

Open-35603.25---High-35811--Low—35134.65--Close-35274.10 on 8.7.2021

Support: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;35380/35428.15/35491.95/35584.30/35648/35811/35902.90/36248/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important)

It has been trying to cross it recent top of 35810.90 it made on 4.6.2021 for the last three days, but could not and plunged down sharply today to close with a loss of 497.20 points. Please note that it has made quadruple top in the range of 35795.75---35811 in trying to cross its top of 35810.90 or say 35811. So now 35811 is a tough resistance point and it has another important and critical point at 36248 moving up. It is needless to mention here that for the strong and steady up momentum it has to move above 36248 and sustain on the closing basis and 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 35380---35648---35811---35985---36248---36328---36537---36939---37100---37708.75.  Similarly going down its important support points could be at 35000(it may change every day) ---34632.60---34525.45---33908.95, please note that break below 35000 on the closing basis may weaken it further, sustained break below 34525.45 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 and weak. So watch out.

In view of the above observation, for safe traders long trade can be tried if it maintains above 35275 for some time and avoid buy on decline for the day. However aggressive traders can try long trade on decline also at appropriate points or near 34632 but not below it.  Since it has not crossed its critical resistance range of 35648---35811---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 maintains above 35275 for some time with a stop loss of 35100.It is for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 34632 but not below it with a stop loss of 34490. It is for the aggressive traders and could be a highly risky trade but worth trying.

2. Sell on the rise near or within the range of 35700---35800 with a stop loss of 35850. It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it moves below 35000 and maintain for some time with a stop loss of 35175. 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.