CNX-BANK NIFTY
Open-38693.65-High-38732.85-Low-38247.25-Close-38297.75
on 22.8.2022.
Support: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:38377.35/38426.65/38765.55/38855.55/39117.15/39197/39424.85/39546.50/39895/40160.20/41367.25/41829.60.
(Bold and underlined figures are most important).
It opened with a down gap today after
key upward reversal on 19.8.2022 and
went down further and finally ended the day with a loss of 700 points. Please note that if it
fails to bounce back above its critical resistance points of 39547—39656.15--- 39759.15---39895 in a shortest possible time on the closing
basis then it may be construed that the uptrend may be over for good for some
time and it may drift down with intermittent relief rallies. Moving down its
key support points would be at 38134---37996.56---37755.55---37754.65----37594.15---37491---36993---36830---36640. Please note that it already into very short
correction mode as it is below its threshold point of 39166.87, it also went down below it next key support level of 38930.66 today which will weaken it further, sustained break below 37996.56 will 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 is still
o.k. despite last two days fall, because it is still making, higher top &
bottom on the line and the bar chart which is a positive sign. But almost all
except for one important technical indicators are showing distinct weakness on
the daily chart, furthermore it has also gone below some of its short term
moving averages which is also concerning, therefore if it does not bounce back
above it critical points in a shortest possible time then the fall looks
inevitable and it may go down sharply with in between short pullbacks. 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 after the key upward reversal on
19.8.2022 the on-going uptrend is in
potential danger, 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 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 but
into corrective mode now therefore short trade can also be attempted after a
reasonable rise or on the price breakdown for corrective gains. Sell on the
rise near or within the range of 38575---38675 but not above it with
a stop loss of 38790 or sell if it moves
below 38247 with a stop
loss of 38450. Please note that
long trade could be a risky affair for the day as it is in a corrective mode
but short trade may not be that risky bet now therefore worth trying at this
juncture. The short term is in corrective mode, medium and long term trend is
still positive as of now, but since it is into corrective mode 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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Thank you for sharing your views.