Wednesday, 4 August 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—5.8.2021

 

CNX--BANK NIFTY

Open-35388.15---High-36219.80--Low—35313---Close-36028.05 on 4.8.2021

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

(Bold and underlined figures are most important) 

It continued the up move today and closed with a robust gain of 820.60 points. It is out of corrective move and also above its short and medium term moving averages which is a positive sign. Please note that break below 35723(it may change) will push it into very short term corrective mode again. Going down it will find good support at 35576---35186---34859.90---34632.60---34525---34410. 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, looking at today’s move it seems that it can happen in coming days. 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 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 still negative which is concerning but if it continues it’s up move then it may also come into positive territory this weekend. So till it happens don’t 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 35723 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 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 35723 but not below it with a stop loss 35600. It is for both the traders and could be a risky trade.

2. Sell on the rise near or within the range of 36850---37100 with a stop loss of 37200. It could be a risky trade but worth trying.

Or

Sell near if it does not move above 36248 in first one and half hour of trade even intraday 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.

 

 

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