Thursday, 15 September 2022

A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—16.9.2022

 

CNX-BANK NIFTY

Open-41533.70-High-41840.15-Low-41153.50-Close-41209.50 on 15.9.2022.

Support:40881/40685.95/40453/40160.20/40043/39895/39546.50/39424.85/39301.25/ 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: 41367.25/41829.60/41840.15/42696/44461/45525/45633.

 (Bold and underlined figures are most important)

It opened on a positive note and went up further and as anticipated it made a new all-time high of 41840.15 but could not sustain and slipped down to end the day with a loss of 196.20 points. In fact it made double top at 41829.60 & 41840.15, therefore now for the up momentum to continue it has to cross the double top and sustain on the closing basis, but as long as it holds 39895 chances of crossing this double top would be alive but sustained break below 39895 may put the uptrend in jeopardy and may open the moderate to sharp downside for it, which may please be noted. However moving up from here it will face key resistance at 41230.82---41367.25--- 41829.60---41840.15---42696---44461.However moving up from here it will face key resistance at 41829.60---42696---44461. Similarly moving down it will find good support at 40920.62---40881---40757.70---40685.95----40453---40349---40205---40160.20---40046---39895----39760----39638---39586.44---39455 it has slipped into very short corrective mode today as it closed below its threshold point of 41230.82 , break below 40920.62 will weaken it further, break below 39895 on the closing basis will be an extreme alert point and may put the uptrend in jeopardy and sustained break below the range of 39760----39638---39586.44---39455 may trigger fresh fall with an accelerated pace. It’s a buy on dip market till it holds 39895 levels on the closing basis.

The overall technical setup is looking strong. Please note that out of four important technical indicators only one indicator is still showing some weak sign on the daily chart, but today after making new high and almost a double top it slipped down to close near the low of the day, which is concerning, therefore if it hold 39895 levels on the closing basis then up move is likely continue with intermittent correction, but it will pick up speed only above 41840.15.

In view of the above observation, for safe traders long trade can only be tried if it move above it double top of 41829.60 & 41840.15 and sustain else avoid. But aggressive traders can try long trade if it moves above 41231 and maintain for some time with a stop loss of  40900 or can be tried on decline near or within the range of 40300-----40000----39895 with a stop loss of 39600. Although, it is in the long term uptrend but slipped into short corrective mode today, therefore short trade can also be tried after reasonable rise or on price breakdown for intraday corrective gain. Sell on the rise near 41850 with a stop loss of 42000 or sell if it moves below 40900 and then below 39895 with a stop loss of 41170& 40050. It slipped into very short corrective mode today, so watch out how this correction culminates, but the medium and the 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.

 

 

 

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