CNX-BANK NIFTY
Open—36766.70---High—37011.20---Low—36464.65---Close—36726.40 on
25.7.2022.
Support36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance36876.35/36993/37238/37471/37581.05/37708.75/37988.60/38134.
(Bold and underlined figures
are most important).
After 6 days of
straight rise finally it corrected today but very mildly and closed with a meager
loss of 12.55 points, this indicates that it is exhibiting tremendous strength.
However the correction may last one or two days more but in correction if it
does not break 36410 on the closing basis then it will be okay but if it
breaks it then the correction may deepen and break below 35897 may
weaken further but to severely threaten the on-going up rally it has break
below its important and critical range of 35762---35585---35481 and
finally sustained break below 35125(figure changes every day) could
signal the end of the rally, looking at the technical setup now, chances of
breaking so many important points moving downward looks pretty slim at this
point of time. Similarly sustained breakout
above 36993 could open up the range up to 38134 on the upside
which may please be noted. The correction was bound to happen and it did happened
but mild one but as of now the up move is likely to resume once the correction
is over. Moving up it will face resistance at 36824---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 36410
and sustain on the closing basis.
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 stop loss of 36700 and it is
suggested to avoid buy on decline for the day. But aggressive traders can try
long trade if it moves above 36770 and maintain for some time with a
stop loss of 36650 or can buy on decline at appropriate points or near 36410
but not below it with a stop loss of 36250. 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 37250---37350 with a short stop loss of 37450 or
sell if it moves below 36410 with a stop loss of 36550 .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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