A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—6.9.2022

 

CNX-BANK NIFTY

Open-39412.05-High-39865.20-Low-39407.40-Close-39805.75 on 5.9.2022.

Support:39656.15/39546.50/39424.85/39301.25/ 39197/39117.15/38855.55/38765.55/38377.35/38426.65/38134/38112.75/37988.60/37708.75/37581.05/37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.70. 

Resistance: 39895/40160.20/41367.25/41829.60.

 (Bold and underlined figures are most important)

It is showing extra-ordinary strength and moving towards its most critical resistance point of 39895 and finally ended the day with a gain of 384.75 points. Please note that if it moves above 39895 and sustain on the closing basis then there is a strong possibility that it could retest its all time high of 41829.60 or may go beyond it also, but if it fails to do so then it may start drifting down. Moving up from here it will face stiff resistance at 39895---39960---40160.20---41367.65—41829.60. Similarly moving down it will find good support at 39667.65---39546.48---39411.76---39247.89---39011.68---38855.55---38765.85---38708---38276.70---38077----37943.85---37708.75, break below 39411.76 & 39247.89 will push it into very short corrective mode, break below 39011.68 will weaken it further and break below 38708 may accelerate the fall which please note.

The overall technical setup is looking strong. But almost all important technical indicators except for one are still showing weak sign on the daily chart, therefore if these indicators do not turn positive shortly then weakness in indicators may come into play and can drag it down, but the good point here is that the price pattern is very strong and indicating no sign weakness as of now. Therefore it seems that if price pattern continues to be strong for few more days then indicators will also turn positive and it is likely to move up further then.

In view of the above observation, long trade can be tried if it moves above 39895 and maintain for some time with a stop loss of 39600 or can buy on decline near 39301 but not below it with a stop loss of 39150. Although it is in the long term uptrend but short trade can also be tried after reasonable rise or on price breakdown for intraday corrective gain. Sell on the rise near or within the range of 40160---40260 with a stop loss of 40400 or sell if it moves below 39150 with a stop loss of 39320. The short, medium and long term trend still looks o.k. as of now.

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 favourable 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. 

m for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.