A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—18.10.2022

 

CNX-BANK NIFTY

Open-39295.60-High-39974.70-Low-39146.70-Close-39920.45 on 17.10.2022.

Support: 39895/39546.50/39424.85/39301.25/ 39197/39117.15//38855.55/38765.55/38426.65/38377.35/38134/38112.75/37988.60/37708.75/37581.05/37471/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.70. 

Resistance: 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 steadily moved up and finally ended the day with a gain of 614.85 points.  Please note that the gap it created on 14.10.2022 is still there and if it makes an effort to fill the gap in the next 2-3 trading sessions which is technically possible then it can come down to 39061, but if it does not fill the gap in stipulated time then chances of filling the gap will recede.

It came out of major corrective mode and also moved above it most critical and important point of 39895, please note that if it sustain above it on the closing basis then the up move should continue with intermittent correction and it could retest it’s all time high of 41840.15 or may go beyond it also, similarly sustain break below this may drag it down. Moving up from here it will find resistance at 40039---40139---40665---40789---40819---40950---41677.65---41840.15 points, it is likely to correct from any of these levels and then resume the up move again. Similarly going down it may find good support at 39895---39614----39586.44---39546.48---39084----38885---38759---38715---38497----38437---38399---38235---38029---37911---37830, sustained break below 39895 may weaken the up momentum which please note.

The short term technical setup has improved considerably. Furthermore all the four important technical indicators have turned positive today on the daily chart this is an extremely good sign for the continuation of the up move, provided it manages to hold its critical point of 39895 on the closing basis. The bias is up as of now.

In view of the above observation, for safe traders long trade can be tried if it holds 39895 levels for some time with a stop loss of 39700 or if it moves above 39975 and maintain for some time with a stop loss of 39700 avoid buy on decline for the day. But aggressive traders can also try buy on decline near or within the range of 39586---39350 with a stop loss of 39200. Please note that long trade below 39895 could be a risky affair for the day. Although, it is out of major corrective mode and is in up momentum but short trade can also be tried on the rise or on the price break down for intraday gains. Sell on the rise near or within the range of 40650---40750 with a stop loss of 40875 or sell if it moves below 39600 with a stop loss of 39930. It is still in the long term uptrend.  

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.