A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—12.9.2022

 

CNX-BANK NIFTY

Open-40520.75-High-40685.95-Low-40280.30-Close-40415.70 on 9.9.2022.

Support:40160.20/40043/39895/39546.50/39424.85/39301.25/ 39197/39117.15/38855.55/38765.55/38377.35/38426.65/38134/38112.75/37988.60/37708.75/37581.05/37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.70. 

Resistance: 40453/40881/ 41367.25/41829.60/42696/44461.

 (Bold and underlined figures are most important)

It opened with an up gap today and went up further but later on steadily moved down and almost filled the gap during the day and finally ended the day with a gain of 206.75 points. But please note that the gap it created on 8.9.2022 is still there and if it makes an effort to fill this gap in next 2-3 trading session which is technically possible then it can come down to 39572. Please note that if it does not fill the gap in the stipulated time then chances of filling the gap will recede for the time being. It is exhibiting good strength and it is well above its critical point of 39895 which is an extremely good sign and if it sustain above it on the closing basis then it could retest its all-time high of 41829.60 in coming days or may go beyond it also but if it fails to hold 39895 levels on the closing basis then it may start drifting down, so be watchful. Moving up from here it will face key resistance at 40453---40881---41367.65—41829.60---42696---44461. Similarly moving down it will find good support at 40160.20---40038.81---39960---39895----39638.71---39546.48---39455.90---39312—38990---38855.55---38765.85---38708---38276.70---38---38236.91---37943.85---37708.75, break below 40038.81 will push it into short corrective mode, break below 39895 on the closing basis will be an extreme alert point, break below the range of 39638---39546.48---39455.90---39312 may trigger fresh fall and finally break below 39120 may accelerate the fall. It’s a buy on dip market till it holds 39895 levels.

The overall technical setup is looking strong. But out of four two important technical indicators two are still showing weak sign on the daily chart despite robust up move, therefore if these indicators do not turn positive shortly then weakness in indicators may come into play and can drag it down, but the good point here is that the price pattern is going strong and indicating no sign weakness as of now and most importantly it has crossed its critical point of 39895 which is hugely positive. Please note that if price pattern continues to be on the up move for next few more days then indicators may also turn positive and it is likely to move up further then else it could be a dicey situation.

In view of the above observation, long trade can be tried if it moves above 40453 and maintain for some time with a stop loss of 40250 or can be tried on decline near 39895 but not below it with a stop loss of 39690. However aggressive traders can also try long trade on decline near 39455 with a stop loss of 39290. Please note that long trade below 39895 could be a risky bet for the day. Although, it is in the long term uptrend but short trade can also be tried after reasonable rise or on price breakdown for intraday corrective gain. Sell on the rise near or within the range of 40770---40850 with a stop loss of 40950 or sell if it moves below 39690 with a stop loss of 39900. The short, medium and long term trend is up 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.

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 favourable 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. 

m for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.