A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---14.12.2020

 

CNX--BANK NIFTY

Open-30555.30--High-30811.80--Low—30328.45—Close-30604.85 on 11.12.2020

Support:30416/30362/30281/30197.85/29919.75/29784.75/29612.55/29314/29149.90/29030.90/28923.10/28580.90/28525.45/27703.30/27589/27164/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.

Resistance:30649/30801/30811.80/30807.25/30899/30996/31649.45/31660.75/31783/32157/32613.10.

(Bold and underlined figures are most important)

After yesterdays shallow correction it moved up today and closed with a small gain of 94.50 points. It is well above its benchmark point of 29314 and also above its other key points which are placed at 30419.59—30366.07---30285.31---30078.19---29112.81---28355.77---27343.65(figures can change), which is a positive sign for the up move to continue. Please note that sustained break below 30419.59 & 30366.07 can push it into very short correction and break below 30285.31 & 30078.19 will increase the intensity of it but it may be short lived, sustained break below 29112.81 on the closing basis will push it into real short term correction mode which can last for few days, sustained break below 28355.77 will push it into medium term correction mode which can last even longer and most importantly sustained break below 27343.65 on the closing basis can push it into long term correction mode and will potentially threaten the uptrend also, which may please be noted.

The overall technical setup is looking good for the up move to continue, furthermore the negative divergence has also started to fade out but it is still there which is slightly concerning therefore it has to be seen whether it completely fades out or not in coming days. So watch out. After yesterdays correction it moved up today and made new all time high but could not cross its recent top of 30709.40 on the closing basis on the line chart, therefore if it does not cross. 30709.40 on the closing basis and falls to close below 30510.35 before then correction could still happen and this time it could be slightly deeper, which may be kept in mind. The bias is on the upside as of now. 

Moving down its critical support points at 30510.35---30419.59---30366.07---30285.31---30197.85—30078.19---29959---29867---29784.75---29644---29542---29314.

Moving up its critical resistance points at 30649---30811.80—30986---31039---31181----31660---31786—32157—32361---32613.10---32763.

In view of the above observation, for safe traders it is suggested to try long trade if it moves and maintain above 30710 for some time or can buy on decline but not below 30510. However aggressive traders can buy on decline up to 30419 but not below it. Please note that buying below 30510 could be a risky trade for the day mind you. It is in good up momentum therefore short trade in general should be avoided, but it can be attempted on the rise at the appropriate price range or on the price breakdown for taking advantage of the intraday corrective move. I would suggest that one should be extremely cautious and careful in the long trade at this point of time. 

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

1. Buy if it moves and maintain above 30710 for some time with a stop loss of 30590.

Or

Buy on decline near 30510 but not below it with a stop loss of 30450. It is for safe traders.

Or

Buy on decline at appropriate points or near 30419 but not below it with a stop loss of 30310. It is for aggressive traders.

2. Sell on the rise near or within the range of 31100---31200 with a stop loss of 31275. It could be a risky trade but worth trying for intraday gain. Square off the trade in any case before the day ends, but can be carried forward if the trade is in substantial profit else not.

Or

Sell near if it does not move above 30812 even in intraday trade for first one and half hour of trade with a stop loss of 30860. It could be a risky trade but worth trying.

Or

Sell if it moves and maintains below 30310 for some time with a stop loss of 30425. It could be a highly risky trade but worth trying for intraday correction.

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.