A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—26.9.2022

 

CNX-BANK NIFTY

Open-40429.35-High-40528.40-Low-39443.45-Close-39546.25 on 23.9.2022.

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

 (Bold and underlined figures are most important)

It opened on a negative note and then as envisaged (see my previous posts)plunged down sharply  and finally ended the day with a whopping loss of 1084.35 points. It is into deep corrective mode now. It has decisively gone below its all short term moving averages which are placed in the range of 40860---40180(range will change every day) for 26.9.2022 and below some medium term averages also, broken multiple bottom on the line and bar chart, decisively broken its rising trend line and most importantly it has closed well below its most important or say make or break point of 39895, all together these developments are highly concerning and indicate further fall ahead. Please note that to get into the up grove again it has to move at least above its critical point of 39895 and sustain on the closing basis and then to move above its short term moving averages, else down move will continue in coming days with in between short relief rallies. Looking at today’s price destruction chances of sharp recovery seems bleak at this point of time. Moving down from here it will find support at 39258.25---38796---37943.85---37708.75—37249.50---36248.60—35761.13---35585.20---35481.20, it is already into deep short term corrective mode, break below 38796 will push it into medium term corrective mode, break below 37708.75 will weaken it further, break below 35761.13 will push it into major long term corrective mode and sustained break below 35585.20 & 35481.20 may accelerate the fall.

It is important to mention here that its long term moving averages are placed in the range of 37040—36218(figure will change every day), break below 37040 will be an alert point for the long term uptrend and sustained break below 36218 may put the long term uptrend in potential danger which may please be noted.

The long term technical setup has got a jolt today as it has slipped into deep corrective mode which is concerning. Furthermore please note that all the four important technical indicators  have turned negative and showing distinct weakness on the daily chart, Please note that if these indicators do not improve fast it can drag it down and it can improve only if it gives good and sustained up move for the next few day, but looking at the last few days price movement and particularly today’s price destruction it seems less likely that it could stage a sharp up move, therefore further fall from here  looks inevitable in coming days with intermittent pullback up move. It is important to mention here that if price pattern do not improve and remains weak the indicators as of now suggest that it could hit 38276 levels or may be much lower levels in coming days.  The undertone is highly bearish as of now.

In view of the above observation, it is into deep short term correction mode; therefore it is already a sell on the rise market now. Therefore it is suggested to adopt sell on the rise or sell on the price breakdown strategy till a visible sign of correction completion emerges. Sell on the rise near or within the range of 40250—40350 with a stop loss of 40550 or sell if it moves below 39400 with a stop loss of 39580. Please note that for safe trader’s long trade can only be tried once it moves above 39895 and sustain on the closing basis or if it moves above its short term moving averages range and sustain. But aggressive traders can try long trade on decline near 37950 with a stop loss of 37800 for pullback gains. 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 long trade can be tried at the most critical points. It is into deep correction mode but medium and long term trend still looks o.k. as of now but seems threatened. So watch out.

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.