A TECHNICAL VIEW ON CNX-BANK NIFTY FOR--15.7.2022

 

CNX-BANK NIFTY

Open—34817.95---High—35027.60---Low—34558.45---Close—34651.20 on 14.7.2022.

Support: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:34658.70/34817.50/35016.30/35105/35327.90/35481.70/35511//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 3rd day today and it closed with a loss of 176.60 points. But despite that there is not much of a change in its technical setup as yet.  It is still below its critical support point of 35100(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 also in for the short term correction for the recent up rally, which is concerning. Therefore till it moves above the important point of 35100 and finally moves above the range of 35481—35585---35762 and sustain on the closing basis, chances of good up move looks slim. However the last threshold point is 34439 which will keep the hope alive for bouncing back but break below this mark may accelerate the fall. 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 & bar chart as yet, therefore chance of bounce back is still there, but it is making lower lows and lower high for the last three days which is a weak sign. It is therefore suggested to avoid long trade till the sign of continuation of the up move emerges. Most importantly please note that close below 33815(this figure may change) as of now will signal the end of the rally. So watch out.

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 35100 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 preferably near 34439 but not below it  with a stop loss of 34300. 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 35100--35200 with a stop loss of 35350, or try short trade on the price breakdown i.e. sell below 34439 with a stop loss of 34590. 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

suranank@gmail.com

Mobile—8240951127/9831313654.