CNX-BANK NIFTY
Open—38111.05---High—38231.85---Low—37249.50---Close—37755.55 on
4.8.2022.
Support: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:37988.60/38112.75/38134/38377.35/38426.65/38765.55/38855.55/39117.15/39197/39424.85/39546.50/39895/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
It opened with an up gap and
went up further but could not sustain at the upper levels and plunged down
sharply and ended the day with a loss of 233.70 points. After yesterdays
mild correction it sharply corrected today but holding on to its important
range of 37763.80 (this figure will scale up if it crosses its
today’s high of 38231.85) ---37754.65----37594.15---37491,
and as long as it holds this range chances of resuming the up move will be
alive else correction may deepen. The correction may last for one or two or few
more days but close above 38024 may indicate that the correction may be
over and it may resume the up move again or it will give visible sign of
correction completion on the downside also. It is on a good technical footing
now therefore, it is likely to resume the up move once the correction is over
which please note. Moving up from here the key resistance points would be at 37764---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----37594.15---37491---36993---36830.
Please note that as it has closed below its threshold point of 37763.80 for
very short term correction mode, therefore technically it has slipped into correction
mode, break below 37491 may weaken it further and sustained break below 36830
may accelerate the fall, which may please be noted. It is therefore suggested
to avoid long trade if it closes below 37491 and can initiate long trade
again once it bounces back above 37764, but close above 38024
will indicate that the correction may be over.
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
positive sign. It is in correction mode now but as long as it holds the range
of 37763.80---37754.65---37724---37594.15---37491 on the closing basis chance
of up move will remain alive but sustained break below this range could
jeopardize the on-going up rally which may please be noted. It is important to
mention here that if it has the desired strength for the up move to continue
then it should not break 36738.95 levels on the downside on the closing
basis in even 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 closes above 38024 or can buy on
decline near or within the range of 37763.80---37754.65---37594.15---37491
but not below it with a stop loss 37450. But aggressive traders can also
try long trade if it moves above 38024 and maintain for some time with a
stop loss of 37740. 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 38500---38600 with a stop loss of 38670 or sell
near 38231 if it does not move above it in first hour of trade with a
stop loss of 38350 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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