Tuesday, 19 January 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---20.1.2021

 

CNX--BANK NIFTY

Open-32082.90--High-32464.95--Low—31863.95—Close-32424.85 on 19.1.2021

Support: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:32465.45/32613.10/32718.95/33043/33327/33681.

(Bold and underlined figures are most important)

It bounced back sharply today which is good sign but it should be watched for one or two days more to get confirmation that the correction is over. 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 bounced back above all the key points today 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. It was in down correction for the last three days but robustly moved up today and bounced back above its short term moving averages also which is a positive sign therefore it seems that the correction may be over but it will get confirmed only once it closes above 32505 and sustain else there is a possibility that it may move down again. Please note that sustained close above 32505 could take it near to its all-time high level of 32718.95 again or beyond also, but on the way up it will face major hurdle at 32613.10.However once it closes above its critical point of 32465.45 and sustain on the closing basis then the possibility is that it would clear the critical resistance point of 32505 & 32613.10 also.  Please also note that if it starts sustain above 32613.10 on the closing basis then it may seek much higher levels in the coming days, which may please be noted. It is important to mention here that if it does not cross 32505 intraday and closes below 32272 on 20-1-2021 and sustain below it then it can slip into correction again therefore the important range for the day would be between 32505---32272 breakout on the either side will give the further direction, which may please be noted. The long term bias is up as of now.

Moving down its critical support points at 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 32465.45---32613.10---32718.95---33043---33327---33681---34130---34323---35440---37700.

In view of the above observation for safe traders long trade can only be tried if it moves and maintain above 32575 on the closing basis, avoid buy on decline for the day. However, aggressive traders can try long trade on decline but not below 32272 or if it moves and sustain above 32465.45 for some time. Since the correction seems to be over but confirmation of it is yet to happen, therefore short trade can also 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 moves and maintains above 32465.45 for some time with a stop loss of 32370. It is for aggressive traders and could be a risky trade.      

  Or

Buy on decline at appropriate points or near 32272 but not below it with a stop loss of 32200.It is for aggressive traders and could be a risky trade.             

2. Sell if it moves and maintains below 32200 for some time with a stop loss of 32300.It could be a risky trade but worth trying.

                                                            Or       

Sell if it does not move above 32465.45 for the  first one and half hour of trade with a stop loss of 32540.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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