Wednesday, 20 January 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---21.1.2021

 

CNX--BANK NIFTY

Open-32388.75--High-32607.45--Low—32322.90—Close-32543.70 on 20.1.2021

Support:32465.45/32298.05/32272/31725.85/31660.75/31649.45/31510.25/31297.30/31264.05/30945.20/30893.65/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.

Resistance:32613.10/32718.95/33043/33327/33681.

(Bold and underlined figures are most important)

As it closed above its important and critical points of 32465.45 & 32505 therefore it seems that the down correction is over and if it holds the 32465.45 level then the up move will continue. It is way above its benchmark point of 29314. Its other key points are placed at 32288—31835.79----30570---29813---28801.71(figures can change) It is well above all the key points which is a positive sign. But if it break 32288 & 31835 again then it will slip into very short term correction and this time it could be severe, sustained break below 30570 on the closing basis will push it into real short term correction mode, sustained break below 29813 will push it into medium term correction mode and most importantly sustained break below 28801.71 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 still looking good. The correction seems to be over as it has closed above its important and critical points of 32465.45 & 32505 and if it sustains above these points on the closing basis then it is likely to cross its previous all-time high of 32613.10 and once it starts sustaining above it on the closing basis then it may head for a big rise, which may please be noted. It is important to mention here that if it closes below 32381.70 on 21-1-2021 and sustain below it then also it can slip into short correction again. The important range for the day would be between 32381.70---32465.45---32613.10---32719---33010. The long term bias is up as of now.

Moving down its critical support points at 32505---32465.45--32381.70---32288—32272---31835.79---31725.85---31510.25---30945.20---30893.65---30570---30197.85---29813---29314---28800.71.

Moving up its critical resistance points at 32613.10---32719---33010---33043---33126---33379---33681---34130---34323---34447---35440---36175---37700.

In view of the above observation for safe traders long trade can be tried if it maintain above 32505 for some time but it would be safe to try long trade once it closes above 32575, avoid buy on decline for the day. However, aggressive traders can try long trade on decline but not below 32381 or if it sustain above 32505 for some time. Since correction seems to be over therefore short trade in general should be avoided but can be attempted after a reasonable rise in the appropriate range or on the price breakdown for taking advantage of the intraday down correction.

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 32505 for some time with a stop loss of 32410.

  Or

Buy on decline at appropriate points or near 32381 but not below it with a stop loss of 32270.It is for aggressive traders and could be a risky trade.             

2. Sell if it moves and maintains below 32270 for some time with a stop loss of 32390.It could be a risky trade but worth trying.

                                                            Or       

Sell on the rise near or within the range of 32850---33050 with a stop loss of 33120.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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