CNX-BANK NIFTY
Open—36061.30---High—36182.70---Low—35876.55---Close—35972.10 on
20.7.2022.
Support35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance35985.25/36083.70/36375.35/36497.35/36651.85/36718.80/36876.35/37232.20/37581.05/37708.75/37988.60.
(Bold and underlined
figures are most important).
It opened with an up gap and
closed with a gain of 251.75 points. It decisively crossed its important
range of 35481—35585---35762, which
is a good sign and as long as it hold this range the up move is likely to
continue with intermittent down correction, but sustained break below this
range and finally break below 35092(figure will change every day) may
put the on-going uptrend in jeopardy. Moving up it will face resistance at 35975---36083.70---36183---36293---36375.35---36497.35---36651.81---36718.80.
It is important to mention here that technically it can fill the gap in
next 3-4 day and if it does makes an effort to fill the gap it can come
down to 35762 levels, furthermore in last 4 trading session it
closed near the high of the day for 2 days, for 1 day it closed in mid
range but today it closed moderately above the low of the day, therefore it
indicates that it could correct tomorrow, which may please be noted.
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. Be alert in long trade if it moves below its important range
of 35762---35585---35481 and sustain on the closing basis. It is also
important to note here 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 for safe traders long trade can be tried if it moves above 36084
and maintains for some time with a stop loss of 35950 it is
suggested to avoid buy on decline for the day. But aggressive traders can also
buy on decline near or within the range of 35762---35585---35481 with a stop
loss of 35400, please note that long trade below 35876 could be a
risky bet for the day. The up move is on and it is buying on decline market now
but today’s price movement suggests that it could correct tomorrow, so be
watchful in long trade. Although it is in short term uptrend 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 36280---36350
with a short stop loss of 36450 or sell below 35876 with a short
stop loss of 35980 but the authentic stop loss would be 36100, can add short position if it breaks and sustain
below 35481 with a stop loss of 35600. 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.
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.