CNX-BANK NIFTY
Open-39732.65-High-39759.15-Low-38848.40-Close-38985.95 on
19.8.2022.
Support: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:39117.15/39197/39424.85/39546.50/39895/40160.20/41367.25/41829.60.
(Bold and underlined figures are most important).
It opened with a small up gap and moved
little higher and then gradually started moving down and finally ended the day with
a huge loss of 670.20 points.
As anticipated it corrected today in fact it has given copy book key upward
reversal today which is highly concerning and this price pattern can put an abrupt end to
the on-going uptrend and drag it down sharply if not negated in next 1-2 trading session. Kindly note that
to negate this reversal and to keep the hope alive for the continuation of the
uptrend it has to move above its most critical resistance points of 39547—39656.15--- 39759.15---39895 and
sustain on the closing basis else the uptrend may be over for now and it may
drift down. Moving down its key support points would be
at 38930.66(this figure will scale up if it crosses its recent high of 39759.15)---38134---37996.56---37755.55---37754.65----37594.15---37491---36993---36830---36640. Please note that it has already slipped into very short correction mode
today as it closed below its threshold point of 39166.87, break below 38930.66 will weaken it further,
sustained break below 37996.56 may
deepen the correction, 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 finally break below 36600 may accelerate the fall.
The overall technical setup still
looks o.k. despite today’s down move, because it is still making, higher top
& bottom on the line and the bar chart which is a very positive sign. But
some of the important technical indicators have show weakness on the daily
chart today and most importantly today’s reversal which is highly concerning
and if reversal is not negated in next 1-2
trading session then indicators weakness will come into play and it may go down
sharply. Therefore it is suggested to avoid long trade till it moves above its
last critical resistance point of 39895
and sustain on the closing basis. Please note that today’s reversal has put a
question mark on the on-going uptrend therefore buy on dip strategy should be put
on hold till clarity on the continuation of the uptrend emerges.
In view of the above observation for
safe traders long trade can only be tried once it closes above 39656.15 or 39895 and avoid buy on decline for the day. However highly
aggressive traders can try long trade if it move above 39050 and maintain for some time with a stop loss of 38830 or can buy on decline at
appropriate points or near 37755.55---37754.65
but not
below it with a stop loss of 37600
. Although it is in the uptrend as of now
but slipped into corrective mode today 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 39550--39660 but not above it with a stop loss of 39770 or sell if it moves below 39848 with a stop loss of 39080. Please note that long trade could be a risky affair for the
day. In light of today’s reversal short trade may not be that risky bet
therefore worth trying at this juncture. The short, medium and long term trend
is still positive as of now, but it has gotten into corrective mode today
therefore it has to be seen how correction culminates.
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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