Wednesday, 6 January 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---7.1.2021

 

CNX--BANK NIFTY

Open-31839.95--High-31982.30--Low—31548.15—Close-31797.90 on 6.1.2021

Support:31783/31660.75/31649.45/30996/30945.20/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.

Resistance:32161/32260/32465.45/32613.10/33043/33327/33681.

(Bold and underlined figures are most important)

After four days of down day it has been rising for the last two which is a positive sign. It is way above its benchmark point of 29314. Its other key points are placed at 31272.99—30972.46---30007---29250.03---28237.91(figures can change) and 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 31272.99 & 30972.46 can push it into very short correction mode which can last for 1-4 days, sustained break below 30007 on the closing basis will push it into real short term correction mode which can last slightly longer, sustained break below 29250.03 will push it into medium term correction mode which can last even longer and most importantly sustained break below 28237.91 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 continuation of the up move. But please note that going down its most critical point is at 31264.05 and sustained close below this mark can push it into good correction mode ,similarly moving up its critical points are at 32465.45 & 32613.10 and sustained close above 32613.10 will accelerate the up momentum which may please be noted. In view of this it is suggested to avoid long trade below 31264.0 and should try only at appropriate points on decline or once it bounces back above the stated points again. The bias is positive as of now.

Moving down its critical support points at 31725---31510---31264.05---31111---30972---30893.65---30834----30479---30347---30197.85---30007---29842---29686---29577---29314---29250---28785---28559---28237.91.

Moving up its critical resistance points at 31891---31982.30---32161—32260---32613.10---33043---33327---33681---34130---34323---35440---37700.

In view of the above observation for safe traders long trade can tried if it moves and maintain above 31800 for some time or on decline but not below 31510. However, aggressive traders can try long trade above 31800 or can buy on decline but not below 31264. 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 maintains above 31800 for some time with a stop loss of 31700.

Or

Buy on decline at appropriate points or near 31510 but not below it with a stop loss of 31410. It is for safe traders.

                                                                Or

Buy on decline at appropriate points or near 31264 but not below it with a stop loss of 31150. It is for aggressive traders.

2. Sell if it moves and maintains below 31200 for some time with a stop loss of 31300.It could be a risky trade but worth trying

Or

Sell on the rise near or within the range of 32160---32260 with a stop loss of 32360. 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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