Saturday, 12 March 2022

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—14.3.2022—18.3.2022

 

CNX--BANK NIFTY

Open—34331---High—34880.05---Low—34094.30---Close—34546.25 on 11.3.2022.

Support:34410/34376/34357/34233/34094/34018/33908.95/33273.95/32842.30/32415.25/32155.35/32141.55/32115/31906.55/31650/30945—932/30893.65/30405/29687.70/28976. 

Resistance:34650.75/34751.25/34859/34991.35/35327.80/35374.15/35576.95/35810.90/35985.25/36151.95/36327.05/36375/36497/36615/36651/36876.35/37140/37232.30/37319.05/37581.05/37708.75/37891.90/38112.75/38377.25/38461.70/38855.55/39197.20/39424.85.

(Bold and underlined figures are most important).

It had a volatile movement and it went down drastically during the week but recovered, but it is still way below its most critical points for the week under review i.e. 7.3.2022 to 11.3.2022. It  ended the week on a slightly positive note compare to previous week but it is on a very weak footing now. It is into long term correction mode  and the threshold point for the same is 35761.13 and also way below its, long term moving averages and other long term key points, which is highly concerning and indicate that long term uptrend may have ended for now and further fall is indicated. However in between short relief rallies could be there. Moving down it may find good support at 34438.50---34018---33900---33630---33530---33463.68---33000---32900---32280---32170---32155.35---32000---31900---31630---31360---31225---30550---30000 , please note that as long as it holds 34438.50(figure will be scaled downward if it breaches 32155.35) on the closing basis ,chances of pullback rally may be there else down move will continue, however it may witness short bounce back from any of mentioned points but that up move may not be lasting till it moves above it key points of 35481.70---35585.20---35761.25 and sustain on the closing basis. Last but most importantly sustained break below 33463.68 on the closing basis will push it into bear market which may please be noted. 

It is into long term correction mode and if it remains below its threshold point of 35761.25 correction may last for few weeks to few months also. Furthermore some important technical indicators are also weak on the daily and weekly chart which indicates that fall further looks inevitable in coming days, if price do not improve sharply and move above at least the range of 35481.70---35761.25 and sustain on the closing basis. The last critical support point would be 33463.68 sustained break below it could witness an accelerated fall. The overall technical setup is terribly weak therefore the bias is bearish as of now.  

In view of the above observation for safe traders it is suggested to avoid long trade completely for now, however aggressive traders can try long trade if it holds 34438.50 for some time with a stop loss of 34050 or on decline near 33463.68 but not below it with a stop loss of 33250 for a possible pullback up move but please note that pullback rallies are treacherous in nature and could fizzle out abruptly also, so be alert and careful in the long trade. It is suggested to avoid long trade in corrective mode. As of now it would be better to adopt sell on the rise strategy or sell on the price breakdown till it gives visible indication of correction completion.

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.

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.

 

 

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