A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—19.10.2021

 

CNX--BANK NIFTY

Open—39794.25---High—39947.60--Low—39569.55---Close-39684.80 on 18.10.2021.

Support:39375/39093/38914/38888/38780/38743/38545/38377.75/38112.75/37708.75/37315.20/37200/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

Resistance: - 39695/39950/40291/40498/40680/40746/40806/40855/41169.

(Bold and underlined figures are most important) 

It is showing good strength for the up move and has been rising for 7 straight days and closed with a gain of 343.90 points today, which is an extremely positive sign for the uptrend to continue. But since it has been rising for the last 7 days in a row therefore chances are that it could correct also any day this week, therefore be alert in long trades at this point of time. But please note that as long as it holds the range of 39222.80---39140---39051 on the closing basis the up move should continue with intermittent correction. Moving up it will face resistance at 39695---39950---40291---40498---40680---40855, 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 40062---39802---39503(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 39222.80---39140---39051---38736.90---38571---38522 (figure may change), it may bounce back from any of these points, break below the range of39222.80---39140---39051 will push it into very short term correction mode, be alert if it slips below 39222.80, break below 38736.90 will push it into short term correction mode, break below 38522 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 as of now 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 commitment henceforth.

In view of the above, for safe traders it is suggested to avoid long trade for the day. However, aggressive traders can try long trade on decline at appropriate points or near 39222 but not below it. In light of the above observation correction looks imminent and may happen any time soon, therefore one should be extremely cautious in the long trade at this point of time. 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 on decline at appropriate points or near 39222 but not below it with a stop loss of 39000. It is for the aggressive traders and could be a highly risky trade.

2. Sell if it moves below 39560 and maintain for some time with a stop loss of 39710. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell on the rise near or within the range of 39950---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.