A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—31.8.2021

 

CNX--BANK NIFTY

Open-35781.05---High-36398.45--Low—35721.90---Close-36347.65 on 30.8.2021

Support:36248/35985.25/35811/35648/35584.30/35491.95/35428.15/35380/34976/34930/34859.90/34663/34632.60/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

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

(Bold and underlined figures are most important) 

It gave a robust up move today and closed with a huge gain of 719.85 points. It finally closed above its critical point of 36248 which is a positive sign and if it sustains above it on the closing basis then it could possibly retest its all time high of 37708.75 or may go beyond it also. Going up to the level of 37708.75 it will face resistance at 36497---36615---36724---36810---37100---37244---37417 points. Similarly moving down its critical support points would be at 36248---36105---36025---35859, but it is suggested to avoid long trade below 36248.

It is important to mention here that its long term technical setup is still good for the uptrend to continue till it holds 34700(figure will change every day) on the closing basis. The short term technical setup has improved drastically as it closed above its critical point of 36248 after toiling hard in this area for some time. Furthermore one very important technical indicator has also turned positive today on the daily chart but still weak on the weekly charts, however if it continues to move up it may turn positive this weekend, so watch out. The short term bias now looks positive with today’s move.

In view of the above observation, It is out of corrective mode, so long trade can be tried if it hold 36248 avoid long trade on decline for the day.  However aggressive traders can also try long trade on decline at appropriate points or near 36025 but not below it. 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 holds 36248 for some time with a stop loss of 36000.It is for the aggressive traders and could be a highly risky trade.

Or

Buy on decline at appropriate points or near 36025 but not below it with a stop loss of 35800. It is for the aggressive traders and could be a highly risky trade.

2. Sell if it moves below 35800 and maintain for some time with a stop loss of 36050. It could be a risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 37100---37250 with a stop loss of 37350 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.