A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—21.9.2022

 

CNX-BANK NIFTY

Open-41304.15-High-41677.65-Low-41207.30-Close-41468.30 on 20.9.2022.

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

 (Bold and underlined figures are most important)

It opened with an up gap and went up further and finally ended the day with a good gain of 563.90 points. It is in long term uptrend and is out of short corrective mode but to catch up the strong up momentum again it has to cross its double top of 41829.60 & 41840.15 and sustain on the closing basis then it could hit much higher levels, else it may drift down. But as long as it holds 39895 levels chances of crossing the double top will remain strong. Moving up it will face resistance at 41829.60---41840.15---42696----44461. Similarly going down from here it will find good support at 41400---41230.82---40920.62---40724---40685.95----40429---40349---40288---40160.20---40046---39895----39760----39638---39586.44---39455 break below 41400 & 41230.82 will again push it into short corrective mode, break below 40920.62 will weaken it further, and finally sustained break below the range of 39948----39895---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. All the important technical indicators are positive except for one now on the daily chart, which is a still o.k. Kindly note, that if it continues the up move then the other indicator can also turn positive. However, as long as it holds 39895 on the closing basis chances of regaining up momentum will always be there. But it is important to cross and sustain above the double top of 41829.60 & 41840.15 on the closing basis for the continuation of the uptrend, which please note.

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 maintain above 41469 for some time with a stop loss of 41190 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 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 41840--41940 with a stop loss of 42100 or sell if it moves below 40650 and then below 39895 with a stop loss of 40790 & 40050. 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.