A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—18.10.2021

 

CNX--BANK NIFTY

Open—38684.65---High—39375.05--Low—38673---Close-39340.90 on 14.10.2021.

Support:39093/38914/38888/38780/38743/38545/38377.75/38112.75/37708.75/37315.20/37200/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

Resistance: - 39375/39695/40234/40498/40680/40746/40806/40855/41169.

(Bold and underlined figures are most important) 

It is showing robust strength in the up move and closed with a huge gain of 705.15 points today, which is an extremely positive sign for the uptrend to continue. But please note that it has been rising for the last 6 days in a row therefore chances are that it could correct any day next week, therefore be alert in long trades. Please note that as long as it holds the range of 38785---38702---38614 on the closing basis the up move should continue with intermittent correction. Moving up it will face resistance at 39375---39695---40234---40498---40680it 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 40021---39761---39451(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 38785---38702---38614---38299---38133.70---38085 (figure may change), it may bounce back from any of these points, break below the range of 38785---38702---38614will push it into very short term correction mode, be alert if it slips below 38785, break below 38299 will push it into short term correction mode, break below 38085 will push it into deep short term correction mode, which may please be noted.

It is important to mention here that its long term technical setup is strong and good for the uptrend to continue. The short term bias is also positive as of now. Furthermore except for one other important technical indicator have also turned positive which may accelerate the up momentum in coming days. I would like to caution here that although it is on a very sound technical footing and further rise is indicated, but with every rise in it the risk element is also increasing, so be alert and careful in your long commitments.

In view of the above observation, long trade can be tried if it moves above 39375 and maintain for some time or can buy on decline near 38785 but not below it. However, aggressive traders can also try long trade on decline at appropriate points or near 38100 but not below it. Please note that long trade below 38785 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 39375 and maintain for some time with a stop loss of 38275. It is for both the traders.

Or

Buy on decline at appropriate points or near 38785 but not below it with a stop loss of 38600. It is for both the traders.

Or

Buy on decline at appropriate points or near 38100 but not below it with a stop loss of 37950. It is for the aggressive traders and could be a highly risky trade.

2. Sell if it remains below 39375 at any point of time for a reasonable time period with a stop loss of 39470. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 39800---40050 with a stop loss of 40125. 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.