A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—12.7.2021

 

CNX--BANK NIFTY

Open-35163.75---High-35225.20--Low—35859.90--Close-35071.95 on 9.7.2021

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 continued the down move today and closed with a loss of 202.15 points. It is below some of its short term moving averages and most importantly one important technical indicator is showing weakness on the daily and weekly chart, therefore all together it is exhibiting short term weakness as of now, which could drag it down in coming days. But please note that 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. But moving up the range of 35811---36248 is very tough and critical and looks slightly difficult to cross at this point of time. However if it crosses 35811 and sustain on the closing basis then it will gain good strength and 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.

In view of the above observation,  long trade can be tried if it maintains above 35275 for some time or can try  on decline at appropriate points or near 34860 but not below it and then near 34632 & 33908 but not below it. Please note that long trade below 34632 could be a risky affair because if it remains below it for the longer time period during the day then it may have accelerated fall.  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 moves above 35275 and maintain for some time with a stop loss of 35050.It is for both the traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 34860 ---34632 & 33908 but not below it with a stop loss of 34800/34500 &33800 respectively. It is for both the traders and could be a highly risky trade but worth trying.

2. Sell on the rise near or within the range of 35650---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 34860 and maintain for some time with a stop loss of 34950. It is for the aggressive traders could be a highly risky trade but worth trying.

Or

Sell if it moves below 34632 and maintain for some time with a stop loss of 34750. 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.