CNX-BANK NIFTY
Open—34734.45---High—34899.95---Low—34463.90---Close—34682.65 on
15.7.2022.
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: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 on-going up rally is still
on and after 3 days of down correction it bounced back today and closed
with a meager gain of 31.44 points. It is still above its critical point
of 34439 which is a positive sign and as long as it holds this mark
chance of continuation of the up move will be alive.
Furthermore please note that
the present range on the line chart now is between 35469.65---34651.20 (this
range can change with the price movement) and if it holds 34651.20
on the closing basis and closes above 35469.65 then the rally may continue,
but it will pick up strong up momentum only if it crosses it most critical
range of 35481—35585---35762 and sustain on the closing basis, similarly
a close below 35469.65 and then break below 34651.20 on the
closing basis may signal the end of the rally. On the bar chart the range is
between 35543.10---34463.90(this range can change with the price movement),
breakout above 35543.10 may continue the up move, similarly break below 34463.90
may signal the end of the rally and break below 34439 may accelerate
the fall. Therefore the broad range as of now is between 35762---34439,
close below 34651.20 will indicate weakness and break below 34439
on the closing basis may end the rally for good and it will turn sell on the
rise market, whereas now it is buy on dip market, which may please be noted.
But since it had good run up one should be extremely cautious and vigilant in
the long trade at this point of time.
The overall short term
technical setup looks o.k.as of now, furthermore some important technical
indicators are positive on the daily chart and most importantly it is making
higher top and bottom on the line and bar chart as of now, so the up move is
likely to continue provided it holds the key points as mentioned in the above paragraph.
Moving up it will face stiff resistance at 34876---35004---35095---35189---35328---35543.10---35850---36083.70.
Please note that it will gain meaningful strength if it moves above 35095(this
figure changes every day) and sustain on the closing basis then the rally
can extend further. I once again reiterate here that it will pick up strong up
momentum only if it crosses it most critical range of 35481—35585---35762 and
sustain on the closing basis else up move may fizzle out.
In view of the above
observation for safe traders long trade can be tried if it maintains above 34685
with a short stop loss of 34550 but the authentic stop loss would be 34400
and avoid buy on decline for the day. But aggressive traders can also try buy
on decline near 34439 but not below it with a stop loss of 34300,
please note that long trade below 34651 could be a slightly risky proposition
for the day. Although the up move is on and it is buy on decline market now but
short trade can also be attempted after a reasonable rise or on the price
breakdown for intraday corrective gains. Sell on the rise near or within the range
of 35175---35300 with a stop loss of 35490 or with a self defined
short stop loss or sell below 34439 with a stop loss of 34550. The
short term bias is positive but medium and long term bias is still 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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