A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—20.9.2022

 

CNX-BANK NIFTY

Open-40685.60-High-41184.25-Low-40509.90-Close-40904.40 on 19.9.2022.

Support:40881/40685.95/40453/40288.90/40160.20/40043/39895/39546.50/39424.85/39301.25/ 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: 41367.25/41829.60/41840.15/42696/44461/45525/45633.

 (Bold and underlined figures are most important)

It opened on a negative note but recovered later and finally ended the day with a gain of 127.60 points. It is still into short term corrective mode and today rise was just a pullback up move, please note that to get out of corrective mode it has to move above 41231 and sustain on the closing basis. However, its 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 40920.62---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 gives sign of further weakness as it closed below 40920.62, break below 39895 on the closing basis would be an extreme alert point and may put the uptrend in jeopardy and finally sustained break below the range of 39760----39694---39638---39586.44---39455 may trigger fresh fall with an accelerated pace. Please note that even after making the 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, but it is into correction mode therefore further fall from here cannot be ruled out. But 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 continues, 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 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 long trade. But aggressive traders can try long trade if it moves above 41231 and maintain for some time with a stop loss of 41100 or can be tried on decline near 40770 but not below it with a stop loss of 40650. Although, it is in the long term uptrend but into short corrective mode now 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 41450--41550 with a stop loss of 41650 or sell if it moves below 40650 and then below 39895 with a stop loss of 40790 & 40050. It is into very short corrective mode now, 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.