Commodities

Tuesday, 12 January 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---13.1.2021

 

CNX--BANK NIFTY

Open-31835.05--High-32397.95--Low—31998.90—Close-32339 on 12.1.2021

Support:32260/32161/31836/31783/31660.75/31649.45/30996/30945.20/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.

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

(Bold and underlined figures are most important)

It has been steadily moving up which is a good sign. It is way above its benchmark point of 29314. Its other key points are placed at 32043—31590.55----30324---29567---28555.47(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 32043 & 31590.55 can push it into very short correction mode which can last for 2-4 days, sustained break below 30324 on the closing basis will push it into real short term correction mode which can last slightly longer, sustained break below 29567 will push it into medium term correction mode which can last even longer and most importantly sustained break below 28555.47 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 tremendously which may please be noted. It is important to mention here that since it is very close to its all time high of 32613.10 and it is also likely to cross this mark as of now but in case if it fails to cross then it could correct sharply from here, therefore it is suggested to be extra careful in long trade till it moves and sustain above 32613.10 on the closing basis. The bias is positive as of now.

Moving down its critical support points at 32043---31998.90---31590.55---31290---30945.20--30893.65---30479---30324---30197.85---29567---29314---29250---28785---28559---28237.91.

Moving up its critical resistance points at 32465.45---32613.10---33043---33327---33681---34130---34323---35440---37700.

In view of the above observation long trade can tried if it moves and maintain above 32398 for some time or on decline but not below 31990. 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 32398 for some time with a stop loss of 32300.

Or

Buy on decline at appropriate points or near 31990 but not below it with a stop loss of 31900.                                                                

2. Sell if it moves and maintains below 31900 for some time with a stop loss of 32060.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.

 

 

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