CNX-BANK
NIFTY
Open—39284---High—39444.60---Low—39119.90---Close—39239.65 on 16.8.2022.
Support: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:39424.85/39546.50/39895/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
It opened with an up gap which
and went up further and finally ended the day with a gain of 197.35 points.
But please note that it has been rising for the last 6 days, so it is vulnerable
for correction also, so be watchful. Furthermore the gap it created today and
on 11.8.2022 is still there and if it makes an effort to fill the gap in
next 3-4 and 1-2 trading session for respective gap which is
technically possible then it can come down to 39088 & 38402 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 39424.85---39547---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. Please note 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 at 38690.35(this
figure will scale up if it crosses its today’s high of 39444.60) ---38134---37756.24---37755.55---37754.65----37594.15---37491---36993---36830---36640.
Please note that break below 38418.60 could push it into very short
correction mode, 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; sustained break below
37491 may deepen the correction further.
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 38690
but highly aggressive traders can still try long trade near or within its
second and last support range of 37755.55---37754.65----37594.15---37491—37484.50 ,but it
may prove 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 39285 and maintain for some time with a
stop loss of 39025 or can buy on decline at appropriate points or near 38690
but not below it with a stop loss of 38550. But aggressive traders can
also try buy on decline near 37755.55---37754.65 but not below it with a
stop loss 37470. Please note that long trade below 38690 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 39570--39650 with a short stop loss of 39750 or sell
if it moves below 38550 with a stop loss of 38700. Since it is in
uptrend short trade could be a risky bet but worth trying at this juncture. 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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