CNX-BANK NIFTY
Open—35298.70---High—35419.65---Low—35047.50---Close—35132.25 on
12.7.2022.
Support: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:35327.90/35481.70/35511//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).
After 4 days of rise it
sharply corrected today and closed with a loss of 337.40 points. But it is still
above its important point of 35102(this figure may change every day) and
as long as it holds this point chances of moving up will be alive. But it may
pick up strong up momentum only once it crosses its critical resistance range
of 35481—35585---35762. 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 35327.90---35481---35485---357162---35850---35958.45---36084
and this rally may end at any of these points or earlier also. But I once again
reiterate that 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 35105 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 holds 35105 and maintains for some with a stop loss of 34900 or on decline near or within the range of 34775---34440 with a stop loss of 34300. Please note that long trade below 35105 could be a risky affair for the day. Today’s corrective move could be a signal of the end of the rally; if it does not bounce back above its key points. Therefore, it is suggested to be extremely cautious and watchful in long trade at this point of time. 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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.