#banknifty analysis for 20th Jan'2021

#banknifty analysis for 20th Jan'2021

We have 10 trading sessions before the budget, the market will be volatile and directional move is only expected after the budget on 1st Feb'21.

The principal rule is, when you have volatility in the market, reduce your risk by reducing the position size.

Decision Zone:- 33,305 - 33,221

Upper Targets:- 32,524 / 32,613 / 32, 742/ 32,982

Lower Targets: 32,021 / 31,806 / 31,591 - 31,550

Their movement is possible, the upside (depicted by the green line ), downsize (depicted by red lines) & withing the range (depicted by cream line)

Read the analysis in context to a larger time frame:-

Weekly Analysis:-

One of the best forms of PA action is not to predict but to act on the price, chart tells you where, when & how to act on price. Wait for the decision points on the chart to act else don't trade.

For E.g. One of the important DP is the weekly low, if the weekly low is broken, then only you will short else you won't.

John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.” So be cautious and flexible as market conditions evolve.

Always trade what you see, never trade what you feel. Make this a habit, you won't be requiring any seminar, webinar, or mentor, you will be self-sufficient.

Regards,
SG