CNX-BANK NIFTY
Open—36026.55---High—36331.70---Low—35887.35---Close—36201 on 21.7.2022.
Support36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance36332/36375.35/36497.35/36651.85/36718.80/36876.35/37232.20/37581.05/37708.75/37988.60.
(Bold and underlined
figures are most important).
It is exhibiting good strength
and in last 5 days it has vertically moved up by more than 1850
points intraday, please note that a vertical rise may have vertical fall,
therefore if it corrects to some extent in a day or two and then resume the up
move then it will be good for the continuation of the up move, else fear of
sharp fall would always be there. Furthermore in next 3 days it could
make an attempt to fill the gap also which it left on 20.7.2022 and if
it does then it could come down to 35762. However as on now the up move
is likely o continue with intermittent down correction as long as it holds the
range of 35762---35585---35481 on the closing basis. Moving up it will
face resistance at 36375.35---36497.35---36651.81---36718.80---36993---37238.
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 important
to note here that this rally is a pullback rally and it is vertically moving up
which is more concerning because 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 36332
and maintains for some time with a stop loss of 36150 it is
suggested to avoid buy on decline for the day. But aggressive traders can also try
buy on decline near 35890 but not below it with a stop loss of 35700
or finally near or within the range of 35762---35585---35481 with a stop
loss of 35350. Please note that long trade below 35890 could be a
risky bet for the day, so be watchful in the long trade below this mark. 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 36650---36700 with a short stop
loss of 36800 or sell below 35890 with a short stop loss of 35980.
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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