Wednesday, 30 December 2020

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---31.12.2020

 

CNX--BANK NIFTY

Open-31479.80--High-31510.25--Low—31007.15—Close-31303.05 on 30.12.2020

Support:30996/30945.20/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.

Resistance:31649.45/31660.75/31783/32157/32613.10.

(Bold and underlined figures are most important)

It corrected today and ended the day with a meager loss of 19.45 points. It is well above its benchmark point of 29314. Its other key points are placed at 30912.34—30611.81---29646.43---28889.39---27877.27(figures can change) it is well above its key points also which is a positive sign for the up move to continue. Please note that sustained break below 30912.34 & 30611.81 can push it into very short correction mode which can last for 1-3 days, sustained break below 29646.43 on the closing basis will push it into real short term correction mode which can last slightly longer, sustained break below 28889.39 will push it into medium term correction mode which can last even longer and most importantly sustained break below 27877.27 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 strong for the continuation of the up move because it is well above its key points and also well above its short, medium and long term moving averages.  Furthermore it has corrected also on the closing basis after five days of straight so now it may resume the up move in a day or two. The bias is on the upside.

Moving down its critical support points at 30945.20---30912.34---30611.81----30542---30243---30197.85---30056---29944.55---29646.43---29483---29314---29157.55---28889.39---28601---28464.69---28351----28144.19—27877.27.

Moving up its critical resistance points at 31481---31697---31786—32161—32361---32613.10---32763.

In view of the above observation long trade can tried if it moves and maintain above 31325 for some time or on the decline but not below 30912. Since it is in the strong up move therefore short trade in general should be avoided but short trade can also be attempted on the rise at appropriate price range or on the price breakdown for taking advantage of the intraday corrective move irrespective of the trend.

 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 maintains above 31325 for some time with a stop loss of 31250.

Or

Buy on decline at appropriate points or near 30912 but not below it with a stop loss of 30840.

2. Sell if does not move above 31511 even in intraday in first one and half hour of trade with a stop loss of 31600.It could be a risky trade but worth trying.

Or

Sell if it moves and maintains below 30840 for some time with a stop loss of 30925.It could be a risky trade but worth trying

Or

Sell on the rise near or within the range of 31750---31850 with a stop loss of 31925. It could be a risky trade but worth trying for intraday gain.

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.

 

 

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