A TECHNICAL VIEW ON CNX-BANK NIFTY FOR--19.7.2022

 

CNX-BANK NIFTY

Open—34841.85---High—35382.50---Low—34804.40---Close—35358.70 on 18.7.2022.

Support:35327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.

 

Resistance:35481.70/35511/35543.10/35585.20/35762/35810.90/35926/35985.25/36083.70/36375.35/36497.35/36651.85/36718.80/36876.35/37232.20/37581.05/37708.75/37988.60.

(Bold and underlined figures are most important).

As expected the up move continued for the 2^nd day and it closed with a robust gain of 676.05 points. Most importantly today it closed above its critical point of 35081(it changes every day) is good sign and as long as it holds this mark chances of moving up will be alive. But it has not yet crossed the upper end of the range as mentioned below, which is slightly concerning.  

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 moving down and gives upside breakout from the points as mentioned in the above paragraph. Moving up it will face stiff resistance at 35481----35543.10---35585---35762---35850---36083.70. 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---35851 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 moves and maintains above 35481 with a short stop loss of 35300 and avoid buy on decline for the day. But aggressive traders can also try buy on decline near 34800 but not below it with a stop loss of 34630, please note that long trade below 35081 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 35760---35875 with a stop loss of 35980  or sell below 34650 with a stop loss of 34775 or sell if it does not move above 35470 in first hour of trade with a stop loss of 35600 . 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

suranank@gmail.com

Mobile—8240951127/9831313654.