Thursday, 11 March 2021

A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—12.3.2021

 

CNX--BANK NIFTY

Open-36112.25--High-36176.90--Low—35764.35—Close-35938.30 on10.3.2021

Support:35884/35815.75/35648/35584.60/35428.15/35379/34893.25/34803.60/32842.30/32718.75/31725.85/31650.90/31510.25/30945.20/30893.65/30197.85/29687.70

Resistance: 36086/36397/36455/36466/36477/36615.20/36647/36897/37170/37284/37708.25/38286/38520.

(Bold and underlined figures are most important)

It moved above its pullback giving threshold points of 35427 & 35378 but to give momentum to the pullback move it has to cross many more hurdles, however as long as it holds 35427 & 35378 (figures can change) levels chances are that the pullback move may last for some time. 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 36031---35815.75---35648---33625---32612.92(figures can change). ). It is still below its first critical point of 36031 which is weak sign. Please note that sustained break below 35815.75 & 35648 will push it again into deep short corrective mode which can last for 4-7 days or more, 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 did moved above its pullback giving threshold points of 35427 & 35379 but to come out of complete corrective mode and pick, up momentum it has to move above 36031 and then above 36718 and sustain on the closing basis, so still it has to go a long way. But as long as it holds 35427 & 35379 levels chances of moving up is there. Please note that sustained close above 36718 may help it to pick, up momentum and sustained close above 37100 will ensure that it may retest its all-time high of 37708.75 or may go beyond also. Moving up it will face resistance at 36031---36177---36718---36989---37100---37232.20---37708.75---37932---38215---38539---38822. Similarly moving down it can find support at 35815.75---35648----35428----35379---35018---34893.25—34658.70---34373---34114---33625. Please note that the short term technical setup is improving now, but the long term technical setup is o.k. as of now.

 In view of the above observation, long trade can be tried if it moves and maintains above 36031  for some time or can buy on decline at appropriate points or near 35427 but not below it. Please note that buy on decline for the day could be a risky proposition. Since it has not come out of corrective phase completely therefore short trade can also be tried after a reasonable rise in the appropriate range or on the price breakdown for taking advantage of the intraday down correction 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 moves and maintain above 36031 for some time with a stop loss of 35890. It is for aggressive traders and could be a risky trade.

Or

Buy on decline but not below 35427 with a stop loss of 35200. It could be a highly risky trade.

2. Sell if it moves and maintains below 35379 for some time with a stop loss of 35500. It could be a risky trade but worth trying for intraday correction.

Or

Sell on the rise near or within the range of 36480---36650with a stop loss of 36750. It could be a risky trade but worth trying for intraday correction.

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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