A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—14.12.2021

 

CNX--BANK NIFTY

Open—37358.20---High—37581.05--Low—36861.20---Close—36925.25 on 13.12.2021.

Support:36876.35/36844/36655.40/36647/36525.95/16151.95/35977.97/35810.90/35531.35/35359.25/35327.90/34817.50/34115/33908/33273.95. 

Resistance: -37140/37232.20/37708.75/37891/38112.75/38377.25/38426/38932.45/39117.15/39292.80/40011.15/40160.20/41367.25/41829.60.

(Bold and underlined figures are most important). 

It opened with an up gap and went further up but could not sustain at the upper levels and slipped down to close with a loss of 180.40 points. It seems that it has given a downward reversal today after the recent up move which is a bad sign; furthermore it is still into medium term correction mode. Its immediate critical points are at 37372---37049.30---36921—36862.30(figure may change). It did move above and below all the points intraday today but at the end closed below first two points and just managed to hold the range of 36921—36862.30 . It is into very short term correction now within the medium term correction mode as it closed below 37049.30, however as long as it holds the range of 36921---36862.30(on the closing basis) chances of pullback up move will be there and if it moves above 37982 and sustain then it may gain good up momentum, but if it breaks below 36921 then the long term  uptrend will be in jeopardy  and break below 36862.30 on the closing basis may end the pullback rally hope and it may resume down move again, which may please be noted. Moving up from here it will face stiff resistance from its critical points at 37049.30---37372---37398---37477---37591---37871---38182---38440---38690---40418---40723---41040 (figures may change) and to regain the steady up momentum again it has to move above this range and sustain, looking at today’s reversal chances of moving up seems capped now and crossing of this range seems out of question in near future as of now. Similarly moving down its important support points will be at 36921---36862.30---36844---36647---36525---36497---36327---36151---35696.75---35359.25---35327.90 (figure may change).

It is still into medium term correction mode, but above some of its short term moving averages on the daily chart, which is a positive sign, but it is still below it on the weekly chart. It is still below almost all of its medium term moving averages on the daily chart, therefore it has to be seen whether it sustain above its short term moving averages and move above its medium term moving averages or not in next 1-2 trading session. Furthermore it is way below some of its long term parameters which are in the range of 38220---41038(figure will change every day) therefore it is still not out of woods and the ongoing  up move was  just a good pullback rally which seems has ended today and down move is likely to resume. But please note that few important technical indicators which were weak on the daily and weekly chart for some time, but some indicators are giving positive indication on the daily chart now, therefore if it holds the key price levels as mentioned above for the next few days then the chances are that it may pick up good and steady up momentum in coming days/weeks, else it may resume down move again. The short term trend improved a bit but got a jolt today therefore it has to be seen how it pans out in next few days, because it is still in corrective mode. The long term uptrend is intact till it holds 36921. It is suggested to be alert in long trade below 36921 (figure may change) and avoid long trade below 36824(figure may change) for sure.    

It is important to mention here that pullback rallies are treacherous in nature and can end abruptly, it is therefore suggested that one should be extremely alert and cautious in the long trade initiated for pullback gains.

In view of the above, it is still into medium term correction mode now, but since it closed above its pullback threshold point of 36862.50 and long term uptrend upholding point of 36921(figure will change every day) therefore for safe traders long trade can be tried if it holds the range of 36921---36862.30 for some time for pullback gains else avoid. I strongly caution here that long trade in a corrective mode for pullback gains could be a risky affair; therefore one should be extremely cautious and vigilant in the long trade at this point of time.  It is still in corrective mode; therefore short trade can be attempted on the rise at appropriate point or can be tried on the price breakdown for taking advantage of the down move gains.

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 (Suggested)

1. Buy if it holds the range of 36921---36862.30 but not below it with a stop loss of 36760. It is for both the traders. It could be a risky trade.

2. Sell near if does not move above 37398 in first one and half hour of trade with a stop loss of 37500. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it moves below 36820 with a stop loss of 36950. It could be a risky trade but worth trying for intraday gains.

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.