Tuesday, 2 March 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—3.3.2021

 

CNX--BANK NIFTY

Open-35458.15--High-35747.05--Low—35002.45—Close-35419.70 on 2.3.2021

Support:35379/32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70

Resistance: 35428.15/35584.60/35648/35815.75/35884/36086/36397/36615.20/36647/36897/37170/37284/37708.25/38286/38520.

(Bold and underlined figures are most important)

After the sharp fall on 26.2.2021 it bounced back on 1.3.2021 but closed above its important point of 35379 (see 2nd paragraph of my post for 1.3.2021) today only and if it sustain above it on the closing basis then this pullback rally may move ahead. Please note that its critical and most important points for the year 2021 are 32613.10---32465.45---31297.30 & 31264.05 and it is well above these points now and as long as it hold these points on the closing basis uptrend will remain intact. Its other key points are placed at 35815.75---35648---33625---32612.92(figures can change). It is still below its first 2 key points of 35815.75 & 35648 therefore it is still into short term correction mode, sustained break below 33625 will push it into medium term correction mode and it can last even longer and most importantly sustained break below 32612.92 on the closing basis can push it into long term correction mode and can potentially threaten the uptrend also, which may please be noted.   

It is still in short term correction mode but since it closed above its important point of 35379 (see my post for 1.3.2021) today ,so the pullback rally is on and it sustains above this level on the closing basis then it can extend the up move up to 35648---35815.75---35945---36250---36544---36718---36989---37100 but as you are already aware that pullback rallies are treacherous in nature and can  end abruptly again, so this ongoing rally may end at any of these points or earlier also but if it moves and sustain above 35648 & 35815.75 on the closing basis then it may pick up momentum and sustained close above 37100 on the closing basis can resume the steady up move again. Similarly moving down it can find support at 34644---34366---33625---33342---32751---32613---32465---32312---31297---31264 levels and can bounce back from any of these points but sustained break below 31264 on the closing basis can potentially threaten the uptrend. Please note that the short term technical setup is shattered again now but the long term setup is still o.k.

It is still in correction mode but since it has closed above the pullback threshold point of 35379 so the pullback rally is on provided it holds this level, therefore those traders who want to take advantage of the pullback rally gains can try long trade if it maintains above 35379 for some time.  Since it is still in very short correction mode therefore short trade can be tried after a reasonable rise in the appropriate range or on the price breakdown for taking advantage of the intraday down correction or otherwise but with extreme alertness and caution because the long term technical setup is still o.k. as of now.

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 maintain above 35379 for some time with a stop loss of 35270. It is for aggressive traders and could be a highly risky trade.

2. Sell if it maintains below 35000 for some time with a stop loss of 35100. It could be a risky trade but worth trying for intraday correction.

Or

Sell near if it does not move above 35815.75 in first two hours of trade even in intraday with a stop loss of 35920. It could be a risky trade but worth trying for intraday correction.

Or

Sell on the rise near or within the range of 36000--36125 with a stop loss of 36250.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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