CNX-BANK NIFTY
Open—35258.90---High—35262.10---Low—34977.75---Close—35124.05 on
8.7.2022.
Support:35100/35016.30/34817.50/34658.70/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance:35327.90/35481.70/35511//35585.20/35762/35810.90/35926/35985.25/36083.70/36375.35/36497.35/36651.85/36718.80/36876.35/37232.20/37581.05/37708.75/37988.60.
(Bold and underlined
figures are most important).
The pullback rally is on and
it has decisively crossed its critical point of 34439, which is a
positive sign. Please note that it is above its short and some of the medium
term moving averages now and some important technical indicators on the daily
chart are also positive (but technical indicators are weak on the weekly and
monthly chart as of now and it is still below its long term moving averages
also, therefore it is very much likely to resume down move again once the on-going rally ends ),
furthermore it is also making higher top & bottom on the line and the bar
chart, therefore all together it is showing good strength now and indicate that
up move may continue for some more time. It is important to mention here that
in all probability it is a pullback rally and you are well aware that these
rallies can end abruptly as it happened in the past also, so although up move
is indicating strength and short term bias is up now, but one should be
extremely alert and vigilant in the long trade at this juncture.
Kindly note that moving up it
may face stiff resistance at 35189---35262---35325---35481---35485---357162---35850---35958.45
and this rally may end at any of these points or earlier also, but if it moves
above the range of 35481—35585---35762 and sustain on the closing basis
then it may pick up strong up momentum and rally can extend further. In this
context please note that if it holds 35104 levels (this figure will
change every day) on the closing basis, then chances will remain intact
that it may cross the above mentioned range. Similarly moving down break below 34823.65(figure
will move up if it crosses it recent high of 35262.10) on the closing basis
can push it into very short term corrective mode and sustained break below 34637
may make the correction little deeper and sustained break below 34439 on
the closing basis will indicate that up move will be difficult to resume and
finally break below 33940 on the closing basis will indicate potential
weakness in the on-going uptrend and break below 33815.90(figure may change
as rally progress) on the closing basis may end the ongoing up move for good and it may
start down journey again. So watch out
In view of the above observation, long trade can be tried if it moves above 35270 and maintains for some with a stop loss of 35050 or on decline near or within the range of 34637---34439 but not below this range with a stop loss of 34200. The highly aggressive traders can also try long trade on decline near 33940 but not below it with a stop loss of 33790. Please note that long trade below 34439 could be a risky affair. It is suggested to be extremely cautious and watchful in long trade at this point of time. Short trade can also be attempted on the reasonable rise and at appropriate points or on the price breakdown for intraday corrective gains. The short term trend is positive as of now, but the medium and long term trend is still in danger.
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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Thank you for sharing your views.