A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—23.9.2022

 

CNX-BANK NIFTY

Open-40889.05-High-41159.20-Low-40360.20-Close-40630.60 on 22.9.2022.

Support: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: 40685.95/40881/41367.25/41829.60/41840.15/42696/44461/45525/45633.

 (Bold and underlined figures are most important)

It opened on a negative note then went down further and finally ended the day with a substantial loss of 572.85 points. It is in the long term uptrend but into short term corrective mode now. 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 alive. Moving up it will face resistance at 40920.62--- 41230.82---41400---41829.60---41840.15---42696----44461. Similarly going down from here it will find good support at 40549---40349---40288---40160.20---40073---39895----39760----39638---39586.44---39455, it is already into corrective mode ,sustained break below the range of 40549---40205---40073(figure will change every day) may trigger fresh fall and finally sustained break below the range of 39895----39760----39638---39586.44---39455 on the closing basis may jeopardize the long term uptrend and may accelerate the fall, which may please be noted.

The long term technical setup still looks o.k. But it is into corrective mode now which is concerning. Furthermore please note that out of four important technical indicators three indicators are showing distinct weakness on the daily chart, furthermore it has gone below some of its short term moving averages, which are placed in the range of 41013---40153(range will change every day) for the day  it has broken its short term rising trend line which is at 40910(figure will change every day) for 23.9.2022 and most importantly it has broken its recent bottom of 40776.60 on the line chart ,all these developments together is a terribly weak sign and highly concerning and indicates that further fall is ahead in coming days if the technical indicators and other parameters do not improve fast and it can improve only if the price movement improves, but from the last few days price pattern is weak, so if the weakness in prices persist then fall looks inevitable.   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. It has a bearish bias as of now.

In view of the above observation, it is still into long term uptrend but into short term correction mode now, therefore please note that it has turned sell on the rise market for now; so it is suggested to avoid long trade till a visible sign of correction completion emerges. Therefore for safe trader’s long trade can only be tried if it moves above it double top of 41829.60 & 41840.15 and sustain on the closing basis or after correction completion sign emerges else avoid long trade. But aggressive traders can try long trade on decline near or within the range of 40250---- 40150----39895 with a stop loss of 39700. Please note that in general long trade in a corrective market for pullback gains could a risky affair because pullback rallies are treacherous in nature and can end abruptly trapping the traders unaware but can be tried at critical juncture. Since it is in correction mode therefore selling on the rise or sell on price breakdown strategy should be adopted till correction completion. Sell on the rise near or within the range of 41250--41400 with a stop loss of 41500 or sell if it moves below 39895 with a stop loss of 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.