A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—11.8.2021

 

CNX--BANK NIFTY

Open-35954.55---High-36317--Low—35890.50---Close-36034.10 on 10.8.2021

Support:35985.25/35811/35648/35584.30/35491.95/35428.15/35380/34976/34930/34859.90/34663/34635.95/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

Resistance;36248/36317/36455.15/36497/36615/37100/37232/37708.75/39010/39695/.

(Bold and underlined figures are most important) 

It had a volatile day but eventually it closed with a meager gain of 5.15 points. It seems that it is on track to move up further, but today’s move was concerning and please note that break below 35797(it may change) on the closing basis will push it into very short term corrective mode and  going down it will find good support at 35648---35576---35186---34859.90---34632.60---34525---34410---34115---33908. 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. It is important to mention here that it has been trying to cross the critical point of 36248 for the last five days and today it moved above this mark intraday but failed to close above it. Please note that if it is not able to cross it during this week on the closing basis then it may possibly start drifting down again which may please be noted.

It is important to mention here that its long term technical setup is good for the uptrend to continue. The short term outlook has improved drastically and one very important technical indicator has also become positive on the daily chart but on the weekly chart it is was still negative last weekend which is concerning but if it continues it’s up journey 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, long trade can be tried if it moves above 36248 and maintain for some time or buy on decline near 35809 but not below it. However aggressive traders can also buy if it moves above 36040 and maintain for some time.  Since it has not yet crossed some of its critical long term averages, 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 36248 and maintain for some time with a stop loss of 36000.It is for both the traders.

Or

Buy on decline at appropriate points or near 35809 but not below it with a stop loss 35690. It is for both the traders and could be a risky trade.

Or

Buy if it moves above 36040 and maintain for some time with a stop loss of 35870.It is for the aggressive traders and could be a risky trade.

2. Sell if it moves below 35797 and maintain for some time with a stop loss of 35900. It could be a risky trade but worth trying.

Or

Sell on the rise near or within the range of 36450---36500 with a stop loss of 36600 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.