A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—25.10.2021

 

CNX--BANK NIFTY

Open—40192.65---High—40587.35--Low—40149.55---Close—40323.65 on 22.10.2021.

Support:40291/40011.15/39292.80/38377.25/38112.75/37708.75/37315.20/36876.35. 

Resistance: -40498/40587.35/40680/40746/40806/40855/41173/41811/41965/42036/42222.

(Bold and underlined figures are most important)

It continued the up move today and hit a new all-time high of 40587.35 and closed with a gain of 293.45 points. It is showing extra ordinary strength for the continuation of the up move, furthermore it has crossed its most critical resistance range and the range for the day will be 40265—40010---39704(figure will increase every day) and if it remains above this range on the closing basis then it could be in a very strong up momentum, but break below this range may lose the up momentum also which may please be noted. Moving up from here it will face resistance at 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. Similarly moving down its critical support points could be at 40265---39711.55---39629---39540.60---39225.60---39060---39011.25 (figure may change), it may bounce back from any of these points, sustained break below 40265 will be an alert sign, break below the range of39711.55---39629---39540.60 will push it into very short term correction mode, break below 39225.60 will push it into short term correction mode, break below 39011.25 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 holds 40265 for some time or buy on decline at appropriate points or near the range of 39711---39629--39540 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 or within the range of 39711—39629---39540 but not below it with a stop loss of 39260. It is for both the traders and could be a highly risky trade.

Or

Buy if it holds 40265 for some time with a stop loss of 40100. It is for both the traders and could be a risky trade.

2. Sell if it does not move above 40650 in first one and half hour of trade with a stop loss of 40750. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell if it moves below 40100 and maintain for some time with a stop loss of 40270. 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.