CNX--BANK NIFTY
Open-35480.05---High-35727.85--Low—35340.70--Close-35673.40 on 13.7.2021
Support:35648/35584.30/35491.95/35428.15/35380/34976/34930/34894.45/34635.95/34525.45/34410/34374/34287/33990.80/33625/33371/33306.80/32842.30/32613.10/32465.45/32415.15/32347/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05.
Resistance;35811/35902.90/36248/36455.15/36497/36615/37232/37708.75.
(Bold and underlined
figures are most important)
It moved up sharply today and closed with a
robust gain of 474.50 points. It
bounced back above its short term moving averages, which is a positive sign. But
one most important and critical technical indicator is showing weakness on the
daily and weekly chart as of now, which indicates that it could drag it down in
coming days. But most importantly it has bed of strong support in the range of 34860---34632---34525---34374---33908,
therefore till it holds this range there is no fear of sharp decline and it may
bounce back also and it did bounce back smartly today. But moving up the range
of 35811---36248
is very tough and critical to cross at this point of time. However
if it crosses 35811
and sustain on the closing basis then it will gain good strength and for
the steady and strong up momentum it has to move above 36248 and sustain on the closing
basis then it could retest its all-time high of 37708.75 or may go beyond also. The long term bias still looks
positive as of now. But the short term outlook looks slightly dicey and weak.
So watch out. The above observation will hold till it gives either side
breakout i.e. either above 36248 or
below 33908. It is therefore
suggested to trade the range of 36248---33908
at appropriate points both long and short trade till break out happen.
In view of the above observation, for safe
traders long trade can be tried if it moves above 35811 and maintain for some time and avoid buy on decline now.
However aggressive traders can try long
trade if it moves above 35730 and
maintain for some time or can try on
decline at appropriate points or near 35070
but not below it. Since it has not
crossed its critical resistance range of 35648---35811---36248
and some long term parameters, therefore short trade can also be tried after
the reasonable rise or can be tried on the price breakdown for taking advantage
of the corrective move.
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.
TRADING STRATEGY (Suggested)
1. Buy if it moves above 35811 and maintain for some time with a
stop loss of 35650.It is for both the traders and could be a risky trade.
Or
Buy if it moves above 35730
and maintain for some time with a stop loss of 35600.It is for the aggressive
traders and could be a risky trade.
Or
Buy on decline at appropriate points or near 35070 but not below
it with a stop loss of 34830. It is for aggressive traders and could be a
highly risky trade but worth trying.
2. Sell on the rise near or
within the range of 36150---36250 with a stop loss of 36300. It could be a highly
risky trade but worth trying for intraday gain.
Or
Sell if it does not move
above 35811 in first one and half hour of trade with a stop loss of 35950 .It could
be a risky trade but worth trying.
Or
Sell if it moves below 35060
and maintain for some time with a stop loss of 35240. It is for the aggressive
traders could be a highly risky trade but worth trying.
Or
Sell if it moves below 34840
and maintain for some time with a stop loss of 35000. It could be a risky trade
but worth trying.
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
suranank@gmail.com
Mobile—8240951127/9831313654.
