A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—19.10.2022

 

CNX-BANK NIFTY

Open-40252.05-High-40435.35-Low-40139.85-Close-40318.75 on 18.10.2022.

Support: 40288.90/40160.20/40043/39895/39546.50/39424.85/39301.25/ 39197/39117.15//38855.55/38765.55/38437.95/38426.65/38377.35/38134/38112.75/37988.60/37708.75/37581.05/37471/37386.35/37238/36993/36876.35/36718.80/36651.85/36497.35/36375.35/36332/36083.70/35985.25/35926/35810.90/35762/35585.20/35543.10/35511/35481.70. 

Resistance: 40453/40685.95/40881/41367.25/41829.60/41840.15/42696/44461/45525/45633.

 (Bold and underlined figures are most important)

It opened with an up gap and went up further and finally ended the day with a gain of 398.30 points.  Please note that the gap it created today and on 14.10.2022 is still there and if it makes an effort to fill the gap in the next 3-4 & 1-2 trading sessions respectively which is technically possible then it can come down to 39974 & 39061 levels, but if it does not fill the gap in the stipulated time then chances of filling the gap will recede.

It is well above its  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 it may drag it down. Moving up from here it will get resistance at 40665---40789---40819---40950---41677.65---41829.60---41840.15 points, it is likely to correct from any of these points and may resume the up move again. Similarly going down it may find good support at 40138---40039---39953---39895---39715----39586.44---39546.48---39436---39200---38885---38759---38715---38497----38437---38399---38235---38029---37911---37830, sustained break below 39895 may weaken the up momentum and can drag it down and break below 39715(figure may change) may push it into corrective mode for its recent rise, which please note.

The overall technical setup looks good as of now. Furthermore all the four important technical indicators are positive 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, long trade can be tried if it moves above 40440 and maintain for some time with a stop loss of 40230 or can try buy on decline  at appropriate points or near 39895 but not below it  with a stop loss of 39680. 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 40900 or sell if it moves below 39680 with a stop loss of 39970. 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.