A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—21.10.2022

 

CNX-BANK NIFTY

Open-40149.50-High-40208.35-Low-39848.85-Close-40099.55 on 20.10.2022.

Support: 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: 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)

After four days of strait rise it corrected today, it opened with a down gap and then went up and in the process filled today’s gap but eventually slipped down and ended the day with a loss of 273.65 points. Please note that it has filled the  gap it created on 18.10.2022 today and chances of filling the gap it created on 14.10.2022 has receded as the stipulated time is over now it can fill this gap at any time which please keep in mind.

It did violated its most critical and important point of 39895 intraday but managed to close well above it which is a positive sign. Please note that if it sustain above it on the closing basis then the up move should continue with intermittent correction and then it could retest its all time high of 41840.15 or may go beyond it also, similarly sustained break below it may drag it down. Moving up from here it will get resistance at 40138---40123---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 40039---39953---39895---39875----39586.44---39546.48---39436---39200---38885---38759---38715---38497----38437---38399---38235---38029---37911---37830, it may bounce back from any of these points. It has slipped into very short correction for its recent rise as it is below its threshold point of 40123 and sustained break below 39895 may weaken the up momentum and may push it into slightly deep corrective mode, which please note. The overall technical setup is good as of now.

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. Please note that it is exhibiting volatility and I have time and again said that the volatility is not good for a steady up move, although technical setup, price pattern and indicators are all good at this point of time but because of volatility it all can turn bad in just 2-3 trading session, therefore be extremely alert and cautious in the long trade now for some time. The bias is up as of now.

In view of the above observation, for safe traders long trade can be tried if it moves above 40375 and maintain for some time with a stop loss of 40080 or can try buy on decline near 39895 but not below it with a stop loss of 39700. But aggressive traders can also try long trade if it moves above 40210 and maintain for some time with a stop loss of 40000.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 40550---40650 with a stop loss of 40775 or sell if it moves below 39700 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.