Commodities

Tuesday, 7 September 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—7.9.2021

 

CNX--BANK NIFTY

Open-36878.25---High-36923.65--Low—36554.45---Close-36592.35 on 6.9.2021

Support:36553/36497/36455.15/36248/35985.25/35811/35648/35584.30/35491.95/35428.15/35380/34976/34930/34859.90/34663/34632.60/34555/34525.45/34410/34374/34357.35/34322/34287/34115.20/33908.95/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05. 

Resistance;36615/37100/37140/37232/37708.75/38743/39010/39695/40498/40855/42222/42808.

(Bold and underlined figures are most important) 

It is not exhibiting the required strength to move up fast but still in the race, today it closed on a weak note with a loss of 168.80 points. But please note that as long as it sustains above its critical point of 36248 on the closing basis then it could possibly retest its all time high of 37708.75 or may go beyond it also. Going up to the level of 37708.75 it will face resistance at 36835---37100---37140---37244---37417 points. Similarly moving down its critical support points would be at 36591.90---36553---36426---36377.50---36248---36150(figures may change). It is below its alert point of 36685(figure will change every day) which is slightly concerning, please note that break below 36591.90 will push it into very short term correction mode, sustained break below 36377.50 on the closing basis will push it into deep short term correction mode and sustained break below 36248 & 36150 on the closing basis may accelerate the fall, which may be kept in mind.

It is important to mention here that its long term technical setup is still good for the uptrend to continue till it holds 34853(figure will change every day) on the closing basis. The short term technical setup not that great but o.k.as of now but it is not exhibiting enough strength in comparison with Nifty-50, furthermore one very important technical indicator is still weak on the weekly charts last weekend also, which also concerning and if it does move up sharply in coming weak then it may slip down, so watch out and be alert in long trade at this point of time. However as long as it holds 36248 levels on the closing basis it seems o.k. for the continuation of the up move.

In view of the above observation, long trade can be tried if it moves above 36835 and maintain for some time or buy if it holds 36592 and finally on decline near 36248 but not below it. However aggressive traders can try long trade if it moves above 36685 and maintain for some time. It is in the uptrend but it is not that strong enough at this point of time, 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 36835 and maintain for some time with a stop loss of 36710.It is for both the traders.

Or

Buy if it moves above 36685 and maintain for some time with a stop loss of 36530.It is for the aggressive traders and could be a risky trade.

Or

Buy if it holds 36592 for some time with a stop loss of 36400. It is for both the traders.

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 but worth trying.

2. Sell if it moves below 36400 and maintain for some time with a stop loss of 36600. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 36975---37150 with a stop loss of 37250. 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.

 

 

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