CNX-BANK NIFTY
Open-40977.20-High-41162.50-Low-40502.05-Close-40776.80
on 16.9.2022.
Support:40685.95/40453/40288.90/40160.20/40043/39895/39546.50/39424.85/39301.25/ 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: 40881/41367.25/41829.60/41840.15/42696/44461/45525/45633.
(Bold and underlined figures
are most important)
It opened with a
down gap but filled the gap during the day and finally ended the day with a
loss of 432.40 points. After making
new all-time high of 41840.15 on 15.9.2022 it has been falling for the
last two days and has gotten into short term correction mode today, but the
uptrend is still intact as long as it holds 39895 levels on the closing basis. But it will catch up strong up
momentum again only once it crosses its double top of 41829.60 & 41840.15 and sustain on the closing basis, else it
may drift down. Moving down from here it will find good support at
40724---40685.95----40453---40349---40205---40160.20---40046---39895----39760----39638---39586.44---39455 it is already into very short corrective mode as it is below its threshold point of 41230.82 , it has
further weakened as it has closed below 40920.62 , break below 39895
on the closing basis will be an extreme alert point and may put the uptrend in jeopardy and finally sustained break below
the range of 39724----39694---39638---39586.44---39455 may trigger fresh fall with an accelerated pace. Please note that even
after making double top it is still a buy on dip market till it holds 39895 levels
on the closing basis.
The overall technical
setup is still looking good despite 2
days fall. But it is into short corrective mode now and it may correct further
from here. The good point here is that some important technical indicators are
still positive except for one now on the daily chart, which is a positive sign.
Kindly note that if, the price destruction continue then the other indicators
can also turn weak and that would be a concerning thing. However, as long as it
holds 39895 on the closing basis
chances of regaining strong up momentum will always be there.
In view of the above observation, for
safe traders long trade can only be tried if it moves 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
41050 or can be tried on
decline near or within the range of 40440-----40280
with a stop loss of 40150. 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 or within the
range of 41300--41450 with a stop
loss of 41550 or sell if it moves
below 40150 and then below 39895 with a stop loss of 40320 & 40050. It slipped into very short corrective mode today, so watch
out for 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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