A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—27.9.2021

 

CNX--BANK NIFTY

Open-37954---High-38112.60--Low—37680---Close-37830.30 on 24.9.2021.

Support:37811.95/37708.75/37232/37140/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

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

(Bold and underlined figures are most important) 

It opened with an up gap today and went almost near its all-time high of 38112.75 but could not cross it, so it has made a double top which is slightly concerning but price pattern is still o.k., however it is suggested to avoid long trade till it moves above 38112.75 and sustain on the closing basis because if it fails to cross it then it could fall sharply. Moving down its critical support points would be at 37795.40--37738---37650---37335---37120---36900.50---36880---36655---36393---36248(figures may change) , break below 37795.40 & 37738 will be an alert point, break below 37650 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. Please note that its most important and solid support range is 36880---36655---36393---36248(figures may change) therefore break below 36880 on the closing basis could be a strong warning signal for long trade and  sustained break below 36393 and finally  break below 36248 on the closing should be the exit point. Similarly moving up the critical resistance points could be at 38112.75---38544.40---38719---38912---39234---39485.(figures may change), it could correct at any of these points and it did retreated from 38112.75 levels.

It is important to mention here that its long term technical setup is good for the uptrend to continue. Furthermore few important technical indicators have also improved but some are still giving weak signal, however price pattern is still ok, therefore if it continues to move up for the next 1-2 days then rest of the 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 closes above 38112.75 or if it holds the range of 37795.40--37738---37650 for some time  but not below it. However, aggressive traders can also try long trade on decline at appropriate points or near 37120 but not below it. Please note that long trade below 37795.40 could be a risky affair for the day. It is out of corrective mode but intraday correction always happens as it happened today also, 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 holds the range of 37795.40--37738---37650 for some time with a stop loss of 37400. It is for both the traders.

Or

Buy on decline near 37120 but not below it with a stop loss of 36860. It is for the aggressive traders. It could be a highly risky trade.

2. Sell if it moves below 37650 and maintain for some time with a stop loss of 37800. It could be a risky trade but worth trying for intraday gains.

Or

Sell if it does not move above 38112.75 in first one and half hour of trade with a stop loss of 38200. 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.