Saturday, 2 July 2022

A TECHNICAL VIEW ON CNX-BANK NIFTY FOR THE WEEK STARTING FROM-4.7.2022---8.7.2022

 

CNX-BANK NIFTY

Open—33264.75---High—33666.50---Low—33080.45---Close—33539.45 on 1.7.2022.

Support:33463.55/33273.95/33180.60/33080.45/33001.75/32652.15/32613.10/32415.25/32290.55/32155.35/31906.55/31649.45/31170.55/3801/30405.65/30220/29687.70. 

Resistance:33774.05/33908.95/34018.45/34115.20/34147.50/34287/34390.05/34817.50/35016.30/35327.90/35481.70/35511/35585.20/35762/35958.45/36083.70.

(Bold and underlined figures are most important).

Kindly see my last post for the week from 6.6.2022—10.6.2022 (it closed at 35275.05 on 3.6.2022 ) where I mentioned that the up rally is losing steam and it is expected to correct if it does not sustain above the range of 35481.70----35762   and it did corrected by more than 2900 points  on intraday basis but staged a bounced back  from its important support range of 33001---32613---32133 and the rally is still on but the price is not showing enough strength  now ,however if it moves above 34439 and sustain then this rally may extend further, but it may gain some strength if it moves above 35160(figure will change every day) and may pick up good momentum if it moves above the critical range of 35481.70----35762  which is not likely to happen at this point of time, similarly break below the range of 33264---33001 will be a weak sign and may end the on-going pullback rally. But it is important to mention here it has strong support range between 32870---32050(32870---32613---32290—32133---32050) therefore the chances are that it may bounce back from this range a number of time before breaking it, but eventually it is likely to break this range as per important technical indicators reading as of now so be watchful and extremely cautious in the long trade at least for now.

It is into long term correction mode now and the on-going up rally is just a pullback move and it may fizzle out any time soon. This rally is holding on because some important technical indicators on the daily chart are showing positive sign, but it is likely to fade out soon and down move may begin because almost all the important technical indicators are showing extremely weak sign on the weekly and monthly chart therefore a good fall looks inevitable in coming week/months provided it breaks its important range of 32870---32050 as mentioned above. The short term trend is slightly positive as of now but the medium and long term trend is still bearish.

In view of the above observation, it is in long term correction mode, therefore it is suggested that the safe traders should avoid long trade now and can only try if it sustain above 34439 on the closing basis. However, aggressive traders can try long trade if it maintains above 33540 for some time with a stop loss of 33400 or on the decline near or within the range of 33270---33000 with a stop loss of 32800. Please trail your stop loss in case of profitable trade to avoid losses. Please note that long trade for playing the pullback move could be a risky affair, therefore one should be very vigilant and cautious in the long trade at this point of time. Since it is in long term correction mode, therefore it is suggested to adopt sell on the rise strategy at appropriate points or sell on the price breakdown with self defined stop losses for corrective gain till it gives visible sign of getting out of corrective mode. The long term bias is bearish as of 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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