Thursday, 21 July 2022

A TECHNICAL VIEW ON CNX-BANK NIFTY FOR--22.7.2022

 

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 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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