CNX-BANK
NIFTY
Open—37847.35---High—38302.35---Low—37681.45---Close—38237.40 on
5.8.2022.
Support:38231.85/38134/38112.75/37988.60/37708.75/37581.05/37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.7035327.90/35081/35016.30/34817.50/34650.95/34528/34327/34287/34233/34018.85/33908.95/33273.95/33080.45/33001/32842.30/32652.15/32415.25/32290.55/32155.35/32115.05/31906.55.
Resistance: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 consolidated and then steadily moved up and closed with a decent gain of 316.80
points. It seems that the correction may be over as it closed above its key
point of 38024 & 38231.85 which is a very positive sign and should
provide it good strength for the up move if it holds it during the week. Please
note that break below 38231.85 could push it little down but as long as
it holds the range of 37817.67---37755.55---37754.65---37594.15—37491.40
there is no threat to the on-going uptrend. As of now it is on a strong
technical footing therefore, it is likely to continue the up move with
intermittent correction which please note. Moving up from here the key
resistance points would be at 38765.85---39424.85---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 38231.85---38134---37817.67(this
figure will scale up if it crosses its today’s high of 38302.35) ---37755.55---37754.65----37594.15---37491---36993---36830.
Please note that break below 38231.85 may drag it slightly down,
sustained break below 37817.67 could push it into very short correction
mode, sustained break below the range of 37755.55---37754.65----37594.15---37491
on the closing basis will make a big dent in the on-going up move, sustained break
below 36883.57 may deepen the correction further and finally break below 36679
may accelerate the fall.
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 37755
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 ,but it
may prove risky 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 only be tried if it holds 38231 or if it moves above 38303
and maintain for some time with a stop loss of 38000 or can buy on
decline at appropriate points or
near 37755 but not below it with a stop loss of 37650. But
aggressive traders can also try buy on decline near or within the range of 37755.55---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 or within the range of 38750--38800 with a short
stop loss of 38875 or sell if it moves below 37650 with a stop
loss of 37830. 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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