Tuesday, 19 July 2022

A TECHNICAL VIEW ON CNX-BANK NIFTY FOR--20.7.2022

 

CNX-BANK NIFTY

Open—35113.25---High—35761.65---Low—35110.50---Close—35720.35 on 19.7.2022.

Support35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.

 

Resistance35762/35810.90/35926/35985.25/36083.70/36375.35/36497.35/36651.85/36718.80/36876.35/37232.20/37581.05/37708.75/37988.60.

(Bold and underlined figures are most important).

The up move continued for the 3rd day in a row and it closed with a good gain of 361.65 points. Most importantly today it closed above its critical point of 35469.65 & 35543.10 on the line and the bar chart respectively which is an extremely positive sign and indicate that the up move is likely to continue. But it is still shade below its most critical range of 35481—35585---35762, sustained close above 35762 will push the rally ahead. But break below 35469.15(figure may change with the price movement) on the closing basis could be an alert sign, and break below 34651.20 & 34463(figure may change with the price movement) as of now may signal the end of the rally. However, as long as it holds 35085(figure changes every day) chances of continuation of the up move will be alive. Moving up it will face resistance at 35762---35851---35975---36083.70---36211---36375.35---36497.35.

The overall short term technical setup looks good 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, so the up move is likely to continue provided it holds the key points on the downside as mentioned in the above paragraph. But kindly note that this rally is a pullback rally and it may end abruptly also, so since it already had a good run up one should be extremely cautious and vigilant in the long trade at this point of time.

In view of the above observation long trade can be tried if it maintains above 35762 with a stop loss of 35650 or can buy on decline near 35085 with a short stop loss of 34900.But aggressive traders can also try buy on decline at appropriate points with self defined stop loss or near 34650 but not below it with a stop loss of, please note that long trade below 35585 and finally below 35085 could be a risky bet 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 36275---36350 with a short stop loss of 36450 or sell below 35481 with a short stop loss of 35600 or sell if it does not move above 35762 in first hour of trade with a stop loss of 35900. The short trade could be a risky bet but worth trying at this point of time. The short term bias is positive but medium and long term bias is still bearish as of now.

In view of the above observation for safe traders long trade can be tried if it moves and maintains above 35762 with a stop loss of 35650 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 tradeDay 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.

 

 

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