CNX-BANK NIFTY
Open—36322.90---High—36823.45---Low—36286.35---Close—36738.95 on
22.7.2022.
Support 36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance 36876.35/36993/37238/37471/37581.05/37708.75/37988.60/38134.
(Bold and underlined figures
are most important).
It is exhibiting robust
strength and continued the up move for the 6th day in a row,
but its vertical rise is a concern because a vertical rise may have vertical
fall also, 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 with every rise fear of sharp fall would always be there, because
correction is bound to happen with this kind of straight rise. Please note that
in correction it should not break below 36266(figure may change) and
sustain because then the correction may deepen. Furthermore in next 2
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 of now the
up move is likely to continue with intermittent down correction and if it moves
above 36993 and sustain on the closing basis then the next potential
upside target could be 38134. Similarly sustained break below its
critical range of 35762---35585---35481 will weaken the rally and
sustained break below 35112(figure will change every day) on the closing
basis may end this up rally. Moving up it will face resistance at 36993---37238---37471---37708.75---37971---38134.
Similarly moving down key support points will be at 36266---35850---35762---35585---35481---35112.
The overall short term
technical setup looks extremely good as of now, furthermore some important
technical indicators are positive on the daily chart and some have turned
positive on the weekly chart also which is a huge positive sign and most
importantly it is making higher top and bottom on the line and bar chart, so
the up move is likely to continue with in between down correction and 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 recent important point of 36266
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 trader’s long trade can be tried if it moves above 36825
and maintains for some time with a short stop loss of 36670 and it is
suggested to avoid buy on decline for the day. But aggressive traders can also try
buy on decline at appropriate points or near 36266 but not below it with
a stop loss of 36050, please note that long trade below 36266 could
be a risky trade for the day, so be watchful in the long trade. Although it is
in 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 37275---37350 with a short stop loss of 37450
or sell if it moves below 36266 with a short stop loss of 36400 or
sell near if it does not move above 36825 even intraday in first one
hour of trade with a stop loss of 37000.The short trade could be a risky
bet but worth trying at this juncture because vertical rise has made it
vulnerable for correction now. The short term bias is positive but medium and
long term bias is still in danger 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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