TECHNICAL VIEW ON CNX-BANK NIFTY FOR--28.7.2022

 

 CNX-BANK NIFTY

Open—36370.55---High—36808.30---Low—36248.60---Close—36783.75 on 27.7.2022.

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. 

Resistance36876.35/36993/37238/37471/37581.05/37708.75/37988.60/38112.75/38377.35/38426.65/38765.55/38855.55/39117.15/39197/39424.85/40160.20/41367.25/41829.60.

(Bold and underlined figures are most important).

It strongly bounced back today after 2 days of down correction and closed with a gain of 375.25 points. It decisively moved above its important points of 36410 and most importantly it closed above its recent top of 36738.95 on the line chart which is an extremely positive sign and indicate that the correction may be over and today’s rise was a signal of resumption of the up move again but it may pick up strong up momentum once it moves above 37260 and sustain. Moving up it will face resistance at 36824—36859---36993---37011---37260---37471---37708.75---37971---38134, please note that if it moves above 36993 and sustain on the closing basis then it will open up the upside range of 38134 off course with resistance at different points on the way. Similarly moving down key support points will be at 36570---36410---35897---35762---35585---35481---35137. 

The overall technical setup looks good as of now, furthermore some important technical indicators are positive on the daily and few on the weekly chart also and it is making higher top & bottom on the line and the bar chart, so till it holds it recent bottom of 36408.50 & 36248.60 on the line & bar chart respectively 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.

In view of the above observation long trade can only be tried if it moves above 36824 and maintain  for some time with a stop loss of 36700 or can try buy on decline at appropriate points or near 36410 but not below it with a stop loss of 36220 . Although it is in the uptrend 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 37260---37340 with a stop loss of 37430 or sell if it moves below 36408 with a stop loss of 36550. The short term bias is positive but medium and long term bias is improving but still not out of woods. So be watchful.

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

suranank@gmail.com

Mobile—8240951127/9831313654.