A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—9.12.2021

 

CNX--BANK NIFTY

Open—37052.75---High—37384.80--Low—36905.15---Close—37284.70 on 8.12.2021.

Support:37232.20/37140/36876.35/36844/36655.40/36647/36525.95/16151.95/35977.97/35810.90/35531.35/35359.25/35327.90/34817.50/34115/33908/33273.95. 

Resistance: -37708.75/37891/38112.75/38377.25/38426/38932.45/39117.15/39292.80/40011.15/40160.20/41367.25/41829.60.

(Bold and underlined figures are most important). 

It opened with an up gap went up further and sustained at the upper level and finally closed with a decent gain of 666.30 points. It has been holding on to gains for the last two days which is a positive sign. It is still into medium term correction mode but it closed well above its important pullback threshold point of 36862.30 and long term upholding point of 36881(figure changes every day) which is positive sign and if it sustains above it then pullback rally may continue and it may gain good momentum if it moves above 37982 and sustain, but break below 36881 & 36862.30 may end the pullback rally hope and long term uptrend will again be in jeopardy which may please be noted. Moving up from here it will face stiff resistance from its critical points at 37477---37591---37871---38097---38358---38608---40416---40723---41039 (figures may change) and to regain the steady up momentum again it has to move above this range and sustain, chances of crossing this range and sustain looks weak as of now. Similarly moving down its important support points will be at 36844---36647---36525---36497---36327---36151---35696.75---35359.25---35327.90 (figure may change).

It is still into medium term correction mode, but above its short term moving averages on the daily chart, which is a positive sign but it is still below it on the weekly chart. It is still below some of its medium term moving averages on the daily chart, therefore it has to be seen whether it sustain above its short term moving averages and move above its medium term moving averages or not in next 2-3 trading session. Furthermore it is way below some of its long term parameters which are in the range of 38097---41038(figure will change every day) therefore it is still not out of woods and the last two days up move was just a strong pullback rally. But please note that few important technical indicators which were weak on the daily and weekly chart for a reasonable time period are showing distinctly positive sign on the daily chart now, therefore it seems that if it holds the critical points mentioned above then chances are that it may pick up good and steady up momentum in coming days/weeks, else it may resume down move again. The short term trend has improved a bit but has to be seen how it pans out in next few days. The long term uptrend is intact as of now. It is suggested to be alert in long trade below 36900(figure may change) and avoid long trade below 36850(figure may change) for sure.    

It is important to mention here that pullback rallies are treacherous in nature and can end abruptly, it is therefore suggested that one should be extremely alert and cautious in the long trade initiated for pullback gains.

In view of the above, it is still into medium term correction mode now, but since it closed above its pullback threshold point of 36862.50 and long term uptrend upholding point of 36881(figure will change every day) therefore long trade can be tried if it holds the range of 36881---36862.30 on decline or if it moves above 37385 and maintain for some time for pullback gains. I strongly caution here that long trade in a corrective mode for pullback gains could be a risky affair; therefore one should be extremely cautious and vigilant in the long trade at this point of time.  It is still in corrective mode; therefore short trade can be attempted on the rise at appropriate point or can be tried on the price breakdown for taking advantage of the down move gains.

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 in the range of 36881---36862.30 but not below it with a stop loss of 36750. It is for both the traders.

Or

Buy if it moves above 37385 and maintain for some time with a stop loss of 37200. It is for both the traders.

2. Sell on the rise near or within the range of 37700---37770 with a stop loss of 37900. It could be a risky trade but worth trying for intraday gain.

 

Or

Sell if it moves below 36840 with a stop loss of 36930. 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.