CNX-BANK
NIFTY
Open—37954.55---High—38068---Low—37692.95---Close—37989.25 on 3.8.2022.
Support:37988.60/37708.75/37581.05/37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance:38112.75/38134/38377.35/38426.65/38765.55/38855.55/39117.15/39197/39424.85/39546.50/39895/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
It opened on a negative note
and moved above yesterday close but could not hold on above it and finally
closed with a meager loss of 34.75 points. As anticipated it corrected
very mildly today and the correction may
last one or two days more. However, it is showing good strength and therefore,
it is likely to continue the uptrend after correction is over. Moving up from
here the key resistance points would be at 36993---38134----38765.85---39547---39895
but in between it could face other small resistance points too, please note that
market could correct from any of these points or earlier as it corrected today
and then may resume the up move again after correction. Similarly moving down
its key support points would be at 37754.65---37724(this
figure will scale up if it crosses its today’s high of 38179.85)37594.15---37491---36993---36790.
Please note that close below 37724 could push it into short correction
and close below 36790 may deepen the correction. It is suggested to
avoid long trade if it closes below 37491 and can initiate long trade
again once it bounces back above 37755.
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, so till it
holds its range of 37754.65---37724---37594.15---37491 on the closing
basis the up move is likely to continue with in between down correction. It is
important to mention here that if it has the desired strength it is not likely
to break 36738.95 levels on the downside on the closing basis in severe
correction also, 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 be tried if it moves above 38069 and
maintains for some time with a stop loss of 37950 or can buy on decline
near or within the range of 37754.65---37724---37594.15---37491 but not
below it with a stop loss 37450. 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 38450---38550
with a stop loss of 38650 or sell if it moves below 37450
with a stop loss of 37610. 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 also drastically improved and seems up now but
has to be watched out for few days.
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.