CNX-BANK NIFTY
Open-39324.40-High-39703.70-Low-39291.15-Close-39656.15on
18.8.2022.
Support:39546.50/39424.85/39197/39117.15/38855.55/38765.55/38426.65/38377.35/38134/38112.75/37988.60/37708.75/37581.05/37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.70.
Resistance:39895/40160.20/41367.25/41829.60.
(Bold and underlined figures are most important).
It opened on a negative note and then went up and crossed yesterdays
high and finally ended the day near the high of the day with a gain of 194.45 points. But please note that it has been going up for
the last 8 days in a row,
therefore it is vulnerable for correction also, so be watchful. Furthermore the
gap it created on 16.8.2022 is still there and if it makes an
effort to fill the gap in next 1-2 trading
session which is technically possible then it can come down to 39088 levels,
but if it does not fill the gap in stipulated time then chances of filling the
gap will recede. It is exhibiting robust strength and on a very
strong technical footing therefore, it is likely to continue the up move with
intermittent down correction. Moving up from here the key resistance points
would be at 39895---40160.20---41367.25—41829.60 but in
between it could face other small resistance points too, please note that
market could correct from any of these points or earlier and then
may resume the up move again after correction. It is important to mention here
that if it moves above 39895 and sustain on the closing basis
then it could retest its all time high of 41829.60 or may go
beyond it also, so moving up 39895 would be the most critical
resistance point. Similarly moving down its key support points would be at39547---39424.85---38888.30(this
figure will scale up if it crosses its recent high of 39703.70) ---38134---37954.25---37755.55---37754.65----37594.15---37491---36993---36830---36640.
Please note that break below 38888.30 could push it into very
short correction mode, sustained break below 37954.25 may deepen the correction and sustained break below the
range of 37756.24---37755.55---37754.65----37594.15---37491 on
the closing basis may jeopardize the on-going uptrend and may accelerate the
fall.
The overall technical setup looks good as of now, furthermore some
important technical indicators are positive on the daily chart and few
indicators on the weekly chart also it is also making higher top & bottom
on the line and the bar chart which is a very positive sign. Therefore up move
is likely to continue with in between down correction till it breaks the key
levels as mentioned above. In view of the above paragraph for safe traders it
is suggested to avoid long trade below 38888 but highly
aggressive traders can still try long trade near or within its second and last
support range of 37954---37755.55---37754.65----37594.15---37491—37484.50,
but please note that it may prove risky below 37954 and highly risky below 37755.55 & 37754.65 which
please note. Please note that it is still a buy on dip market as of now till it
signals otherwise.
In view of the above observation long trade can be tried if it moves
above 39705 and maintain for some or holds 39547
for some time with a stop loss of 39400 or can buy on decline at
appropriate points or near 38888 but not below it with a stop
loss of 38690. But aggressive traders can also try buy on decline
near 37954---37755.55---37754.65 but not below it with a stop
loss 37470. Please note that long trade below 38888 could
be a risky bet for the day. 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 40000--40100 with a stop loss
of 40250 or sell if it moves below 38690 with
a stop loss of 38900. Since it is in uptrend short trade could be a
risky bet but worth trying at these points for corrective gains. The short,
medium and long term trend is positive 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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Thank you for sharing your views.