A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—22.10.2021

 

CNX--BANK NIFTY

Open—39676.55---High—40200.45--Low—39428.10---Close—40030.20 on 21.10.2021.

Support:40011.15/39695/39375/39093/38914/38888/38780/38743/38545/38377.75/38112.75/37708.75/37315.20/37200/36615/36525.95/36317/36248/36151.95/35531/34817.50. 

Resistance: - 40200.45/40291/40498/40680/40746/40806/40855/41169.

(Bold and underlined figures are most important)

It opened on a positive note today and went up further and hit a new all-time high of 40200.45 and closed with a decent gain of 512 points. It is showing extra ordinary strength for the continuation of the up move, therefore it seems that further rise is ahead off course with intermittent correction. Moving up from here it will face resistance at 40291---40498---40680---40855---41173---41811---41965---42036---42222, 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 40215---39955---39610(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 39518---39416---39333---39245---38930---38764---38715.65 (figure may change), it may bounce back from any of these points, break below 39518 will be an alert sign, break below the range of39416---39333---39245 will push it into very short term correction mode, break below 38930 will push it into short term correction mode, break below 38715 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 are also positive as of now, 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 , long trade can be tried if it moves above 40220 and maintain for some time or buy on decline at appropriate points or near 39518 but not below it. It is in the long term uptrend but correction always happens, 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 because it is in strong uptrend.

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 39518 but not below it with a stop loss of 39280. It is for both the traders and could be a highly risky trade.

Or

Buy if it moves above 40220 and maintain for some time with a stop loss of 40000. It is for both the traders and could be a risky trade.

2. Sell if it does not move above 40220 in first one and half hour of trade with a stop loss of 40320. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell if it moves below 39518 and maintain for some time with a stop loss of 39600. 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.