Saturday, 30 July 2022

TECHNICAL VIEW ON CNX-BANK NIFTY FOR—1.8.2022

 

 CNX-BANK NIFTY

Open—37717.30---High—37754.65---Low—37221.15---Close—37491.40 on 29.7.2022.

Support:37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.

 

Resistance: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 opened up with an up gap for the 2nd day in a row but filled the today’s gap during the day and closed with a gain of 113.25 points. But the gap it created on 28.7.2022 is still there and if it makes an effort to fill the gap which is technically possible in remaining time of next 2-3 trading session then it can come down to 36808 but if it does not fill it in the stipulated time then chances of filling the gap will recede for now, but these gaps are dicey. Nonetheless it is showing good strength and likely to continue the uptrend with intermittent down correction. Moving up from here the key resistance points would be at 37708.75---37755---38134----38765.85---39547---39895 but in between it could face other resistance points too, please note that market could correct from any of these points or earlier and then may resume the up move again. Similarly moving down its key support points would be at 37399.22(this figure will scale up if it crosses its today’s high of 37754.65) ---36993---36738.95---36408.50----36248.60. Please note that close below 37399.20 could push it into short correction and close below 36739.95 could be an alert sign and break below 36465.12 & 36408.50 could push it into much deeper correction and may jeopardize the on-going uptrend.

The overall technical setup looks good as of now, furthermore some important technical indicators are positive on the daily and few indicators 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 the up move is likely to continue with in between down correction. It important to mention here, that if it has the desired strength it is not likely to break 36738.95 on the closing basis, which please note. It is a buy on dip market for sure as of now till it signals otherwise.

In view of the above observation long trade can only be tried if it moves above 37755 and maintain for some time with a short stop loss of 37600 or can try buy on decline near 37399 but not below it with a stop loss of 37215. But aggressive traders can also try long trade if it moves above 37660 with a stop loss of 37470 or can buy on decline near 37220 with a stop loss of 37000. 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 37900---38030 with a stop loss of 38180 or sell if it moves below 37220 with a stop loss of 37420 or sell near if it does not moves above 37755 in first one and half hour of trade even intraday with a stop loss of 37850 . Since it is in uptrend short trade could be a risky bet but worth trying at this juncture. The short term bias is positive and medium and long term bias has drastically improved but still not out of danger as of now. 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 tradeDay 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.

 

 

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