CNX-BANK
NIFTY
Open—37868.25---High—38150.45---Low—37779.90---Close—37920.60 on
5.8.2022.
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:37988.60/38112.75/38134/38231.85/38377.35/38426.65/38765.55/38855.55/39117.15/39197/39424.85/39546.50/39895/40160.20/41367.25/41829.60.
(Bold and underlined
figures are most important).
It opened on a positive note
and moved in a short range and finally ended the day with a gain of 165.05 points.It
seems that the correction is still on and a close reasonably above 38024
may indicate that the correction may be over and it may resume the up move again,
so be watchful here. It is still on a good technical footing 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 38134---38231.85----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 and then may resume the up move again after
correction. Similarly moving down its key support points would be at-37763.80(this
figure will scale up if it crosses its today’s high of 38231.85)---37754.65----37594.15---37491---36993---36830.
Please note that sustained break below 37763.80 will push it into very
short term correction mode, break below 37491 may weaken it further and
sustained break below 36830 & 36685 may accelerate the fall, which
may please be noted.
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 37755.55
on the closing basis it is o.k. break below this will indicate weakness and
correction may deepen, but it has a last important support range of 37754.65---37724---37594.15---37491
and this range could help it to bounce back again but break below this range
could severely jeopardize the on-going up rally and it may end it for good also
which may please be noted. It was buying on dip market till yesterday but now
wait for buying on dip till it reasonably closes above 38024. The next
week seems make or break for it which please note.
In view of the above observation
for safe traders long trade can only be tried if it closes above 38024 and
it is suggested to avoid buy on decline for the day. But aggressive
traders can try long trade if it moves above 37950 and maintain for some
time with a stop loss of 37850 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. Please note that long trade below 37755 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 38230
with a short stop loss of 38350 or sell if it moves below 37755
with a stop loss of 37940. 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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