A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—7.9.2022

 

CNX-BANK NIFTY

Open-39892.95-High-40073.75-Low-39564.30-Close-39666.50 on 6.9.2022.

Support:39895/39656.15/39546.50/39424.85/39301.25/ 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 opened with a small up gap and went up further but could not sustain at the upper level and slipped down and finally ended the day with a loss of 139.25 points. It is showing extra-ordinary strength and today it moved well above its most critical resistance point of 39895 intraday but at the end closed well below it, which is slightly concerning. Please note that from here to pick up a strong up momentum it has to close above 39895 and sustain on the closing basis then there would be a strong possibility that it could retest it’s all time high of 41829.60 or may go beyond it also, but if it fails to move above it and sustain then it may start drifting down, so be watchful at this juncture. Moving up from here it will face stiff resistance at 39895---39960---40073.75---40160.20---41367.65—41829.60. Similarly moving down it will find good support at 39667.65---39571.09---39546.48---39407.23---39171---38855.55---38765.85---38708---38276.70---38---38236.91---37943.85---37708.75, break below 39546.48 & 39407.23 will push it into very short corrective mode, break below 39171 will weaken it further and break below 38790 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 going strong and indicating no sign weakness as of now, but today’s movement was slightly concerning. However if price pattern continues to be strong for next few more days then indicators may also turn positive and it is likely to move up further then else it could be a dicey situation. So watch out.

In view of the above observation, for safe traders long trade can be tried if it closes above 39895 and sustain or can be tried on decline near 39300 but not below it with a stop loss of 39100. However aggressive traders can also try long trade if it moves above 39670 and maintain for some time with a stop loss of 39530. 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 39100 with a stop loss of 39350. 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.