A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—20.8.2021

 

CNX--BANK NIFTY

Open-36222.50---High-36248.90--Low—35432---Close-35554.50 on 18.8.2021

Support:35491.95/35428.15/35380/34976/34930/34859.90/34663/34635.95/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

Resistance;35584.30/35648/35811/35985.25/36248/36317/36455.15/36497/36615/37100/37232/37708.75/39010/39695/.

(Bold and underlined figures are most important) 

As it failed to cross its critical mark of 36248 despite various attempts in last few days therefore as envisaged it slipped down for the 3^rd consecutive day with a loss of 312.95 points. It has broken some of its short term moving averages also which is a weak sign and most importantly it has decisively broken its threshold point of 35797.40 for getting into very short term correction mode this is concerning, so technically it is into correction mode now till it bounce back above it or give visible indication of correction completion at the lower levels. The possible correction completion levels could be at 35216---34922---34635---34546 or earlier, but please note that sustained break below 34922on the closing basis could push it into deep short term correction mode and fall may accelerate and most importantly sustained break below 34546(this figure will change every day) may put the uptrend in potential danger which may be kept in mind. Therefore moving down 34922 & 34546 are the benchmark point as of now.  The other support point would be at 35531---35186---34859.90---34632.60---35525---34410---34115---33908. Please note that break below 35531 could also accelerate the fall.  It is important to mention here that for a steady and strong up momentum, it has to move above 36248 and sustain on the closing basis then it could possibly retest its all time high of 37708.75 or may go beyond also. Going up to the level of 37708.75 it will face resistance at 36248---36497---36615---37232---37417 points. Looking at last few day price movement and particularly today’s move, it seems less likely to cross the critical mark of 36248 as of now. Last but not the least it is relatively very weak on the technical chart in comparison with Nifty-50. Therefore be alert and cautious in long trade at this point of time.

It is important to mention here that its long term technical setup is good for the uptrend to continue till it holds 34546(figure will change every day). The short term technical setup has got a jolt today, so watch out for next 1-2 days how it pans out, but one very important technical indicator is positive on the daily chart but on the weekly chart it is was negative last weekend which is concerning but if it moves up sharply then it may also come into positive territory this weekend and if does not happen then it may start drifting down. So till it comes into positive mode it is suggested that not to be fearless but be cautious and careful in your long trades.

In view of the above observation, since it has slipped into very short term correction mode therefore long trade should be avoided till it closes above 35797.40 and safe traders should only try long trade if it moves and closes above 36248 and sustain.  However aggressive traders can try long trade if it moves above 35797 and maintain for some time or on decline at appropriate points or near 34922 and then near 34546 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 technical setup gives weak indication in short term, 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 35797 and maintain for some time with a stop loss of 35650.It is for the aggressive traders and could be a risky trade.

Or

Buy on decline at appropriate points or near 34922 and then near 34546 but not below it with a stop loss of 34800 & 34450. It is for the aggressive traders and could be a highly risky trade but worth trying.

Or

Buy if it holds 35531 for some time with a stop loss of 35400.It is for the aggressive traders and could be a risky trade.

2. Sell if it moves below 35531 and maintain for some time with a stop loss of 35620. It could be a risky trade but worth trying.

Or

Sell on the rise near or within the range of 36050---36150 with a stop loss of 36300 It could be a highly risky trade but worth trying for intraday gain.

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.