Wednesday, 3 August 2022

TECHNICAL VIEW ON CNX-BANK NIFTY FOR—4.8.2022

 

 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 tradeDay 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

suranank@gmail.com

Mobile—8240951127/9831313654.

 

 

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