A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—30.8.2021

 

CNX--BANK NIFTY

Open-35559.75---High-35727.90--Low—35359.25---Close-35627.80 on 27.8.2021

Support:35584.30/35491.95/35428.15/35380/34976/34930/34859.90/34663/34632.60/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

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

(Bold and underlined figures are most important) 

It gave a positive close today also but with a meager gain of 10.25 points. It is still into corrective mode and will come out of it only if it moves above 35797 and sustain on the closing basis but if it holds 35172 on the downside then the chances are that it may still come out of corrective mode and may resume up move. But if it breaks below 35172 and sustain then the critical support points would be at 34922---34674(last figure can change). Please note that break below 34922 will push it into deep short term correction mode and most importantly sustained break below 34674(figure will change every day) may put the uptrend in potential danger which may be kept in mind. The other support point would be at 35525---34410---34115---33908. Please note that break below 33908 could 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 35648---35797---35811---35911---36248---36317---36497---36615---37232---37417 points.  Please note that the Nifty Bank is grossly under performing in comparison with Nifty-50, so be watchful and alert in long trades.

It is important to mention here that its long term technical setup is still good for the uptrend to continue till it holds 34674(figure will change every day) on the closing basis. The short term technical setup has improved a bit but it has to watched for next 2-3 days whether it improves further or not, furthermore certain  very important technical indicator are giving weak indication on the daily and weekly charts which is concerning and it may drag it down from here if these indicators does not improve fast. The short term bias is mixed with a downward tilt as of now.

In view of the above observation, since it is still into very short term correction mode therefore long trade should be avoided till it gives visible indication of correction completion on the downside or can be tried if it closes above 35797 and sustain.  However aggressive traders can try long trade if it moves above 35715 and maintain for some time or on decline at appropriate points or near 35172 but not below it. Since it is still in corrective mode and 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 35715 and maintain for some time with a stop loss of 35560.It is for the aggressive traders and could be a highly risky trade.

Or

Buy on decline at appropriate points or near 35172 but not below it with a stop loss of 35000. It is for the aggressive traders and could be a highly risky trade but worth trying.

2. Sell if it moves below 35530 and maintain for some time with a stop loss of 35640. It could be a risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 36150---36250 with a stop loss of 36350 It could be a highly risky trade but worth trying for intraday gain.

Or

Sell if it does not move above 35910 in first one and half hour of trade even intraday with a stop loss of 36020. It could be a risky trade but worth trying for intraday gains.

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.