A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—28.9.2021

 

CNX--BANK NIFTY

Open-38054.75---High-38355.20--Low—37968.20---Close-38171.25 on 27.9.2021.

Support:38112.75/37811.95/37708.75/37232/37140/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

Resistance :- 38545/38719-743/38888/38914/39093/39695/40234/40337/40498/40680/40746/40855/41169.

(Bold and underlined figures are most important) 

It opened on a positive note and went up further and made new all-time high of 38355.20 and finally closed with a gain of 340.95 points and crossed double top of 38112.75, which is a positive sign. The price movement is exhibiting good strength therefore it seems that the uptrend should continue off course with intermittent correction. Moving up from here its target or critical resistance point could be at 38355---38545---38743---38914---39093---39340---39770---40234---40500---40680(figures may change) it could correct at any of these points before moving up further. Similarly moving down its critical support points would be at 37923.50--37835---37795.40---37520---37306---36900.50---36880---36655---36393---36248(figures may change) , break below 37923.50 & 37835 on the closing basis will push it into very short term correction mode, sustained break below 37795 on the closing basis will weaken it further, break below 37520.30 will push it into short term corrective mode and sustained break below 37305.90 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 36915---36693---36431---36248(figures may change) therefore break below 36915 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 its most critical resistance range would be between 39005---39770(figures may change); break above this range will accelerate the up momentum.

It is important to mention here that its long term technical setup is good for the uptrend to continue. The short term technical setup is also good, furthermore the technical indicators have also turned positive, therefore up move is likely to continue in coming days with in between down move. The short & long term bias is positive as of now.

In view of the above observation, for safe traders long trade can be tried if it holds 38112.75 levels for some time and avoid buy on decline for the day. However, aggressive traders can also try long trades on decline near the range of 37923----37835 but not below it. It is in the uptrend 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 the 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 on decline near the range of 37923---37835 with a stop loss of 37700. It is for the aggressive traders and could be a risky trade.

Or

Buy if it holds 38112.75 for some time with a stop loss of 37800. It is for both the traders.

2. Sell if it moves below 37700 and maintain for some time with a stop loss of 37850. It could be a risky trade but worth trying for intraday gains.

Or

Sell if it does not move above 38360 in first one and half hour of trade with a stop loss of 38450. It could be a risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 38650---38750 with a stop loss of 38850. 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.