A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—22.9.2022

 

CNX-BANK NIFTY

Open-41282.60-High-41501.70-Low-40889.15-Close-41203.45 on 21.9.2022.

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 then went down further and finally ended the day with a loss of 264.85 points. It is in long term uptrend but today gotten into corrective mode again. Please note that to get out of corrective mode it has to close above 41230.82 & 41400 and sustain. 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 eventually. But as long as it holds 39895 levels chances of crossing the double top will remain strong. Moving up it will face resistance at 41230.82---41400---41829.60---41840.15---42696----44461. Similarly going down from here it will find good support at 40920.62---40724---40685.95----40549---40349---40288---40160.20---40073---39895----39760----39638---39586.44---39455, it is into corrective mode ,break below 40920.62 will weaken it further, sustained break below the range of 40549---40205---40073(figure will change every day) may trigger fresh fall with an accelerated pace and finally sustained break below 39895 on the closing basis may jeopardize the long term uptrend ,which may please be noted..

The long term technical setup is still looking good. But it is into corrective mode again which is slightly concerning. Please note that out of four important technical indicators only one indicator is showing distinct weakness on the daily chart, which is a bad indication, because the price movement is not that great in fact it is also weak, so if the weakness in prices continues then the other three indicators would also turn negative and can drag it down.   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 strong 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 moves above 41502 and maintain 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 40680. Although, it is in the long term uptrend but slipped into correction again 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 41750--41840 with a stop loss of 41940 or sell if it moves below 40680 and then below 39895 with a stop loss of 40900 & 40100. It is into short term correction again but 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.