A TECHNICAL VIEW ON CNX-BANK NIFTY FOR--12.7.2022

 

CNX-BANK NIFTY

Open—35017.60---High—35543.10---Low—35006.55---Close—35469.65 on 11.7.2022.

Support:35327.90/35100/35016.30/34817.50/34658.70/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.

 

Resistance:35481.70/35511//35585.20/35762/35810.90/35926/35985.25/36083.70/36375.35/36497.35/36651.85/36718.80/36876.35/37232.20/37581.05/37708.75/37988.60.

(Bold and underlined figures are most important).

It opened weak on a note and but ended the day with a moderate gain of 345.59 points. It is exhibiting good strength in comparison with Nifty. It is still positive on the daily chart on all important parameters as of now, so the up move may continue. It is important to mention here that in all probability it is a pullback rally and you are well aware that these rallies can end abruptly as it happened in the past also, so although up move is indicating strength and short term bias is up now, but one should be extremely alert and vigilant in the long trade at this juncture.

Moving up it may face stiff resistance at 35481---35485---357162---35850---35958.45---36084 and this rally may end at any of these points or earlier also, but if it moves above the range of 35481—35585---35762 and sustain on the closing basis then it may pick up strong up momentum and rally can extend further. In this context please note that if it holds 35103 levels (this figure will change every day) on the closing basis, then the chances will remain intact for the up move to continue. Similarly moving down break below 34961(figure will scale up if it crosses it recent high of 35543.10) on the closing basis can push it into very short term corrective mode and sustained break below 34775.50(figure will scale up if it crosses it recent high of 35543.10)  may make the correction little deeper and sustained break below 34439 on the closing basis will indicate that up move will be difficult to resume and finally break below 33940 on the closing basis will indicate potential weakness in the on-going uptrend and break below 33815.90(figure may change as rally progress) on the closing basis may  end the ongoing up move for good and it may start down journey again. So watch out

In view of the above observation, long trade can be tried if it moves above 35586 and maintains for some with a stop loss of 35400 or on decline near or within this range of 35000----34961 but not below it stop loss of 34750. The highly aggressive traders can also try long trade on decline at appropriate points or near 34439 but not below it with a stop loss of 34250. It is suggested to be extremely cautious and watchful in long trade at this point of time because with every rise chances of rally fizzle out is also becoming greater till it moves above its critical points mentioned above. Short trade can also be attempted on the reasonable rise and at appropriate points or on the price breakdown for intraday corrective gains. The short term trend is positive as of now, but the medium and long term trend is still in danger. 

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.