CNX-BANK NIFTY
Open—35259.80---High—35308.15---Low—34757.60---Close—34827.80 on
13.7.2022.
Support: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:35016.30/35105/35327.90/35481.70/35511//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).
The correction continued for
the 2nd day and it closed with a loss of 304.45
points. Today it slipped below its critical support point of 35105(it
changes every day), furthermore it is already into long term correction
mode as it is way below its long term correction threshold point of 35762
and today slipped in for the short term correction also as far as the up rally
which started from 32290 is concerned, which is concerning. Therefore
till it moves above the important point of 35105 and finally moves above
the range of 35481—35585---35762 and sustain on the closing basis,
chances of good up move looks slim. However last threshold point of 34439
will keep the hope alive for bouncing back. Please note that all important
technical indicators are still positive on the daily chart, furthermore it has
not yet broken its recent bottom on the line and bar chart as yet, therefore
chance of bounce back is still there although it is making lower high and lower
lows for the last two days which is a bad sign. It is therefore suggested to
avoid long trade till the signs of continuation of the up move emerge.
Since it is in long and short
term correction mode therefore safe traders should avoid long trade till it
closes above 35762 and sustain. However aggressive traders can try long
trade for pullback gains if it moves above 35105 and maintains for some
with a stop loss of 34900 for a
target of 35327---35481---35858 or on decline near or within the range of 34775---34439 but
not below this range with a stop loss of 34250. It is important to
mention here that long trade in a corrective market could be a highly risky
affair therefore one should be extremely cautious and careful in the long trade
at this point of time. Since it is in corrective mode therefore short trade
should be attempted on the rise near or within the range of 35250--35400 with
a stop loss of 35500, or try short trade on the price breakdown i.e.
sell below 34740 with a stop loss of 34850. It could be a risky
trade but worth trying for intraday gains in a corrective market. The short
term bias is still up but it is in corrective mode, medium and 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
Mobile—8240951127/9831313654.
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Thank you for sharing your views.