A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—29.9.2021

 

CNX--BANK NIFTY

Open--38360---High--38377.25--Low—37315.20---Close-37945 on 28.9.2021.

Support:37811.95/37708.75/37315.20/37232/37140/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

Resistance:-38112.75/ 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 made a new all-time high of 38377.25 but could not sustain at the upper level and plunged down and hit a low of 37315.20 for the day and then recovered sharply in the late afternoon and finally closed with a loss of 226.25 points. It exhibited huge volatility today which is slightly concerning for the steady up move. But it managed to hold their key level which is a good indication. Please note that if it closes above 38165 and sustain then it could retest its all-time high of 38377.25 it made today or may go beyond it also. Moving up further its target or critical resistance point could be at 38545---38666---38743---38914---39093---39340---39770---40234---40500---40680(figures may change) it could correct at any of these points before moving again. Similarly moving down its critical support points would be at 37940.35--37852---37795.40---37537---37322.73(figures may change) , break below 37940.35 & 37852 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 37537 will push it into short term corrective mode and sustained break below 37322.73 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 36950---36728---36460---36248(figures may change) therefore break below 36950 on the closing basis could be a strong warning signal for long trade and  sustained break below 36460 and finally  break below 36248 on the closing should be the exit point. Similarly moving up its most critical resistance range would be between 39042---39630(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 except for one the other important technical indicators have also turned positive, therefore if it holds the range of 37940.35--37852---37795.40(figure may change) 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 trader’s long trade can be tried if it moves above 38175 and maintain for some time, avoid buying on decline for the day. However, aggressive traders can also try long trade if it holds the range of 37940.35--37852---37795.40 for some time but not below it. It is in the uptrend but intraday correction always happens as it happened today, 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 37940---37852 with a stop loss of 37750. It is for the aggressive traders and could be a risky trade.

Or

Buy if it moves above 38175 and maintain for some time with a stop loss of 38050. It is for both the traders.

2. Sell if it moves below 37750 and maintain for some time with a stop loss of 37950. It could be a risky trade but worth trying for intraday gains.

Or

Sell near if it does not move above 38400 in first one and half hour of trade with a stop loss of 38500. 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.