A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—13.10.2021

 

CNX--BANK NIFTY

Open—38178.35---High—38609.60--Low—38144.60---Close-38521.50 on 12.10.2021.

Support:38377.75/38112.75/37708.75/37315.20/37200/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

Resistance: - 38545/38743/38888/38914/39093/39695/40234/40337/40498/40680/40746/40855/41169.

(Bold and underlined figures are most important) 

It continued the up move today and hit a new all-time high of 38609.60 and closed with a gain of 227.70 points, which is a positive sign for the up move to continue. Please note that as long as it holds the range of 38200.55---38118---38030 on the closing basis up move should continue. Moving up it will face resistance at 38545---38609.60---38743---38888---38914---39093---39695---40234 it could correct from any of these points and then may resume the up move again or may break down also which may be kept in mind. Please note that its most important and critical resistance range is between 39930---39665---39358(figure will change every day) and if it moves above this range and sustain on the closing basis then it could be in a very strong up momentum. Similarly moving down its critical support points could be at 38377.75---38200.85---38118---38030---37714.70---37548---37500---37461---37413---37207---37006---36876---36760---36525.95(figure may change), it may bounce back from any of these points but sustained break below 38377.75 will be an alert point, break below the range of 38200.85---38118---38030 will push it into very short term correction mode, be alert if it slips below 38200.85, break below 37714.70 will push it into short term correction mode, break below 37500 will push it into deep short term correction mode, break below 37207 will be a strong alert point, break below 37006 will weaken it further, sustained break below 36876 may trigger the further fall,  break below 36760 will indicate that the on-going uptrend may be in jeopardy and sustained break below 36525.95 on the closing basis may accelerate the fall.

It is important to mention here that its long term technical setup is still good for the uptrend to continue. The short term bias is also positive as of now. Please note that except for one other important technical indicators have also turned positive which could may accelerate the up momentum.

In view of the above observation, long trade can be tried if it moves above 38610 and maintain for some time or can buy on decline near 38200 but not below it. However, aggressive traders can also try long trade on decline at appropriate points or near 37800 but not below it. Please note that long trade below 38200 could be a risky affair for the day. It is in the long term uptrend but correction always happen, therefore short trade can also be attempted on the rise and at appropriate point or can be tried on the price breakdown for taking advantage of the intraday gains. Please be extra alert 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 if it moves above 38610 and maintain for some time with a stop loss of 38360. It is for both the traders.

Or

Buy on decline at appropriate points or near 38200 but not below it with a stop loss of 38100. It is for both the traders.

Or

Buy on decline at appropriate points or near 37800 but not below it with a stop loss of 37700. It is for the aggressive traders and could be a risky trade.

2. Sell near if it moves below 38100 with a stop loss of 38250. It could be a risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 38900---39000 with a stop loss of 39100. It could be a risky trade but worth trying for intraday gains.

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.