Thursday, 14 January 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR---15.1.2021

 

CNX--BANK NIFTY

Open-32526.70--High-32718.95--Low—32442.35—Close-32574.65 on 14.1.2021

Support:32465.45/32260/32161/31836/31783/31660.75/31649.45/30996/30945.20/30202.10/30197.85/29784.75/29441.30/29314/29149.90/29030.90/28923.10/28580.90/27703.30/27568.35/27088/26950/26643/26560/26441/26311.30/25998/25891/25723.55/25426.75.

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

(Bold and underlined figures are most important)

It again crossed its previous all time high of 32613.10 intraday today and made a new all time high of 32718.95 but closed below previous all time high for the second consecutive day which is slightly concerning and if it fails to close above this mark in next 2-3 trading sessions then it could correct sharply which may please be noted. 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) 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 32288 & 31835.79 can push it into very short correction mode which can last for 2-4 days, sustained break below 30570 on the closing basis will push it into real short term correction mode which can last slightly longer, sustained break below 29813 will push it into medium term correction mode which can last even longer 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 looking good for the continuation of the up move. But for the second consecutive day it failed to close above its previous all time high of 32613.10 which is not a good sign. Therefore I once again reiterate that if it fails to close and sustain above the mentioned level in next 2-3 trading session then it could correct sharply but sustained close above this mark may take it to much higher levels which may please be noted. Therefore at this point of time it is suggested to be slightly cautious in the long trade till it closes above 32613.10 and avoid long trade if it closes below 32465.45. At present it is dangerously poised or one may say evenly poised so be careful. Please note that it’s most critical and important points for the year 2021 are 32613.10---32465.45---31264.05 and if it remains below any of these points one should be very alert and careful in the long trade.

Moving down its critical support points at 32465.45---32288---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---32718.95---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 32575 for some time or buy on decline but not below 32288. However aggressive traders can try long trade if it maintains above 32575 for some time or on decline but not below 32000. 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 32575 for some time with a stop loss of 32490.

Or

Buy on decline at appropriate points or near 32288 but not below it with a stop loss of 32200.It is for safe traders.               

Or

Buy on decline at appropriate points or near 32000 but not below it with a stop loss of 31900.It is for aggressive traders.              

                                      

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.

                                                            Or       

Sell near if does not move above 32719 even in intraday in first two hours of trade with a stop loss of 32770.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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