A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—27.10.2021

 

CNX--BANK NIFTY

Open—41057.75---High—41367.25--Low—40829.15---Close—41238.30 on 26.10.2021.

Support:41173/40855/40680/40498/40291/40011.15/39292.80/38377.25/38112.75/37708.75/37315.20/36876.35. 

Resistance: -41811/41830/41965/42036/42222/42808/43050/43248/45178.

(Bold and underlined figures are most important)

It opened on a negative note and moved in a short range but finally closed above its first critical point of 41231 therefore out of corrective mode with a meager gain of 45.90 points. It is showing good strength for the continuation of the up move.  Furthermore as long as it holds its most critical support range and the range for the day will be 40430—40161---39850(figure will increase every day) the strong up momentum is expected to continue off course with intermittent corrections. Moving up from here it will face resistance at 41811---41830---41965---42036---42222---42808---43050, 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 41231---40661---40578---40490---40175---40009---39960 (figure may change), it may bounce back from any of these points, break below 41231 will push it into very short term correction mode, break below the range of 40661---40578---40490 will push it into short term correction mode, break below 40175 will weaken it further and sustained break 39960 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 is also positive as of now, so it may continue the up move with an accelerated pace in coming days with in between down correction.  But 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 41231 level for some time and maintain for some time or buy on decline at appropriate points or near the range of 40661---40578---40490 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 40661---40578---40490 but not below it with a stop loss of 40250. It is for both the traders and could be a risky trade.

Or

Buy if it holds above 41231 and maintain for some time with a stop loss of 41000. It is for both the traders and could be a risky trade.

2. Sell near if it does not move above 41370 in first one and half hour of trade with a stop loss of 41470. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell near if it does not move above 41830 in first one and half hour of trade with a stop loss of 42000. It could be a highly risky trade but worth trying for intraday gains.

Or

Sell if it moves below 41000 and maintain for some time with a stop loss of 41250. 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.