Saturday, 9 April 2022

A TECHNICAL VIEW ON CNX-BANK NIFTY FOR-11.4.2022-15.4.2022

 

CNX-BANK NIFTY

Open—37619.70---High—37884.20---Low—37405.20---Close—37752.05 on 8.4.2022.

Support:37708.75/37581.05/37346.80/37319.05/36827.60/36651.85/36373.60/36298.35/36151.95/35696/35585.20/35481.70/35327.90/35016.30/34817.50/34233/34018.45. 

Resistance:37891.90/38112.75/38377.25/38461.70/38765.85/38855.55/39197.20/39424.85/40160.20/41367.25/41829.60.

(Bold and underlined figures are most important).

During the current week from 4.4.2020—8.4.2022 under review , it remained well above its critical points of 36827.60---36373.60---36298.35---35761.13---35585.20---35481.70 which is a positive sign and as long as it holds these points it is likely to move up and the up rally may gain strength. But sustained break below any of these points could be concerning and finally sustained break below 35481.70 could put the long term uptrend in the potential danger. The technical setup looks good as of now, therefore it is likely to move up, moving up from here it will face stiff resistance at 37971---38134---38765.85---38855.50---39197---39424.85---39547---39895, please note that the rally may end at any of the above stated points or earlier also, but if it moves above 37709 on the closing basis then it may get the required strength and it may pick up momentum, however up journey from here may not be that smooth but on as of now. Lastly and most importantly if it moves above 39895 and sustain on the closing basis then it is likely that it could retest its all-time high of 41829.60 or may move higher. 

The technical indicators are positive on the daily chart and showing improvement on the weekly chart and some has turned positive also, which indicates that the on-going up move may extend and can last for some time, off course with intermittent correction and provided it holds the above mentioned critical points. The technical setup looks good and the long term and short term bias is positive as of now.  

In view of the above observation long trade can be tried if it moves above 37885 and maintain for some time with a stop loss of 37700 or buy on decline at appropriate support points with self defined stop losses but not below 37350 with a stop loss of 37250 and then near the critical points as mentioned above with self defined stop losses but not below 35585 with a stop loss of 35400. But safe traders should avoid long trade below 37560. Please trail your stop loss in case of profitable trade to avoid losses. As it is in the up move so it is buy on dip market as of now, therefore short trade should be avoided in general, but it can be tried on the reasonable rise at appropriate points or on the price breakdown with self defined stop losses for a possible intraday corrective gains. The bias is positive now.

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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