A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—24.9.2021

 

CNX--BANK NIFTY

Open-37241.25---High-37830.75--Low—37216.15---Close-37771.70 on 23.9.2021

Support:37708.75/37232/37140/36615/36497/36317/36248/36151.95/35531/34817.50. 

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

(Bold and underlined figures are most important) 

After yesterdays moderate fall it staged a sharp recovery today and moved out of corrective mode and finally closed near the high of the day with a robust gain of 827.05 points. Despite certain technical indicators showing weakness on the daily chart, today’s price movement indicates extraordinary strength in it, which is positive indication but with caution. Please note that for the strong up momentum it has to close above 37795.40 and sustain and today it closed just below this mark but looking at today’s move it is likely that it will definitely move above this point and retest its all-time high of 38112.75 and may go beyond it also. Moving up from here its target points or stiff resistance points could be at 37795.40---38112.75---38544.40---38719---38912---39234---39485.(figures may change), it could correct at any of these points or may move sideways before further rise. Similarly moving down its critical support points would be at 37650---37523---37335---37120---36900.50---36853---36628---36360---36248(figures may change) , break below 37650 (figure may change) on the closing basis will push it into very short term correction mode, sustained break below 37335 on the closing basis will weaken it further and push it into short term corrective mode and sustained break below 37120 on the closing basis could push it into deep short term corrective mode which could drag it down further. But as long as it holds 36900.50 (figure can change) on the down side chances of up move will remain intact. Please note that its most important and solid support range is 36853---36628---36360---36248(figures may change) therefore break below 36853 on the closing basis could be an alert sign for long trade and break below 36248 will be the exit point.

It is important to mention here that its long term technical setup is good for the uptrend to continue. Furthermore it is out of corrective mode but certain important technical indicators are still giving weak signal despite robust rise today, however price pattern does not have any weakness, therefore if it continues to move up for the next 1-2 days then indicators may also turn positive.  The long term bias is positive as of now. The short term bias is also positive but little caution is to be exercised in wake of some weak technical indicators.

In view of the above observation, for safe traders long trade can be tried if it moves above 37835 and sustain for some time or buy on decline near 37650 but not below it. However, aggressive traders can also try long trade on decline at appropriate points or near 37400 but not below it. Please note that long trade below 37650 could be a risky affair for the day. It is out of corrective mode but intraday correction always happens, therefore short trade can also be attempted after reasonable rise or can be tried on the price breakdown for taking advantage of the intraday gains. Please note that short trade could be a risky proposition as it is in the uptrend, so be alert and watchful in short trade.

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 37835 and maintain for some time with a stop loss of 37600. It is for both the traders.

Or

Buy on decline near 37650 but not below it with a stop loss of 37500. It is for both the traders. It could be a highly risky trade.

Or

Buy on decline near 37400 but not below it with a stop loss of 37300. It is for the aggressive traders. It could be a highly risky trade.

2. Sell if it moves below 37400 and maintain for some time with a stop loss of 37550. It could be a risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 38450---38550 with a stop loss of 38650. 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.