A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—22.9.2021

 

CNX--BANK NIFTY

Open-37238.40---High-37340.70--Low—36525.95---Close-37235.95 on 21.9.2021

Support:37232/37140/36615/36497/36317/36248/36151.95/35531/34817.50. 

Resistance;37708.75/37811.95/38112.75/38545/38719/39093/39695/40498/40680/40855/42222/42808.

(Bold and underlined figures are most important) 

After hitting a new all-time high of 38112.75 on 17.9.2021 it started correcting. Its critical points on the downside are 37650---37335---37120.65---36248----36151.95---35956.95(figures may change). It is into very short term correction mode as it is below its first two critical points, break below 36248(figure will change every day) on the closing basis will weaken it further and sustained break below 35956.95 on the closing basis will push it into deep short term corrective mode which could further drag it down, however if it holds above 36900.50(figure may change) on the closing basis then it could stage a pullback rally and if it moves above 37795.40 and sustain on the closing basis the it could retest its all-time high of 38112.75 or may go beyond also. Apart from the above mentioned support and resistance levels it has the following critical support and resistance levels also.

Critical support points:--37120---36900.50---36248----35956.95.

Critical resistance points:-37335---37507---37650---37738---37813---38112.75.

 It is important to mention here that its long term technical setup is still good for the uptrend to continue. It is into short term correction mode now but the technical setup looks ok therefore it seems that it may come out of it. I once again repeat that break below 36248 on the closing basis could accelerate the fall, similarly if it maintains above 36900.50 then it could give a relief rally and may come out of corrective mode and resume the uptrend else it may start moving down again. The long term bias is still positive as of now but it is into short term correction now, so watch out for correction completion.

In view of the above observation, for safe traders long trade can be tried if it moves above 37350 and maintain for some time  or  buy on decline at appropriate points or near 36900 but not below it. It is in corrective mode, therefore short trade can also be tried after reasonable rise or can be tried on the price breakdown for taking advantage of the intraday gains. 

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 37400 and maintain for some time with a stop loss of 37200.It is for both the traders.

Or

Buy on decline at appropriate points or near 36900 with a stop loss of 36700. It is for both the traders. It could be a risky trade.

Or

Buy on decline near 36248 but not below it with a stop loss of 36100. It is for both the traders. It could be a highly risky trade.

2. Sell if it moves below 37145 and maintain for some time with a stop loss of 37270. It could be a risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 37700---37800 with a stop loss of 37900. 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.