CNX-BANK NIFTY
Open—36688.55---High—36695.75---Low—36334.10---Close—36408.50 on
26.7.2022.
Support36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance36497.35/36651.85/36718.80/36876.35/36993/37238/37471/37581.05/37708.75/37988.60/38134.
(Bold and underlined figures
are most important).
The correction continued for
the 2nd day and it deepened today and closed with a loss of 317.90
points. Please note that it closed below its important support point of 36410
so it has slipped into very short correction mode which is concerning and
break below 35897 may weaken it 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 35137(figure changes every day) could
signal the end of the rally, looking at the technical setup now, chances of
breaking so many important support
points moving downward looks slim at this point of time. But to resume the up
move again it has to close above 36740 first and then to move above 36993
and 37250 to pick up strong up momentum. Moving up it will face
resistance at 36740---36410---36824---36993---37250---37471---37708.75---37971---38134.
Similarly moving down key support points will be at 36266---35897---35762---35585---35481---35137.
The overall technical setup
looks good as of now, furthermore some important technical indicators are
positive on the daily chart and despite the correction for the last 2 days
it has not violated any bottom on the line and the bar chart so far, so till it
holds it recent bottom and other key points on the downside as mentioned in the
above paragraph the up move is likely to continue with in between down
correction. Since it is in correction mode therefore be alert in the long trade
if it stays below 36410 and moves below 35897 and sustain on the
closing basis.
In view of the above
observation for safe trader’s long trade can only be tried if it closes above 36740
and suggested to avoid buying on decline. But aggressive traders can try
long trade if it moves above 36660 and maintain for some time with a
stop loss of 36480 or can buy on decline at appropriate points or near 35897
but not below it with a stop loss of 35700. Although it is in the
uptrend but in correction mode now therefore 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 36700---36750 with a
short stop loss of 36850 or sell if it stays below 36410 with a
stop loss of 36550. 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.
No comments:
Post a Comment
Thank you for sharing your views.