A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—27.10.2022

 

CNX-BANK NIFTY

Open-41513.65-High-41530.65-Low-41021.45-Close-41122.75 on 25.10.2022.

Support: 40950/40881/40685.95/40453/40288.90/40160.20/ 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: 41134/41367.25/41829.60/41840.15/42696/44461/45525/45633.

 (Bold and underlined figures are most important)

It opened with an up gap but could not sustain at the upper levels and slipped down and in the process filled today’s gap and finally ended the day with a loss of 182.14 points. Please note that it made a bearish candle today but the price pattern is not that weak but watch out in any case. It is in the up momentum therefore up move is likely to continue with intermittent correction. Please note that if it manages to hold 40950 on the closing basis then it is very much likely to retest its all-time high of 41840.15 or may go beyond it also. Moving up from here it will face resistance at 41134---41350---41677.65---41829.60---41840.15---42845---43052---43317---43542---44330---44461---44592 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 40950----40800---40552---40288---40085----39895, it may bounce back from any of these points. But it  slipped into very short correction for its recent rise as it is below its threshold point of 41134 and sustained break below 40950 may weaken it further, sustained break below 40800 & 40552 may deepen the correction and finally break below 39895 may end the hope of retesting it all time high mark, 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 and retest of its all-time high, provided it manages to hold its critical point of 40950 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 41350 and maintain for some time with a stop loss of 41100 or can try buy on decline near 40950 but not below it with a stop loss of 40750. But aggressive traders can also try long trade on decline near 40552 with a stop loss of 40300, please note that long trade below 40950 could be a risky affair for the day. Although, it is in up momentum but short trade can also be tried on the reasonable rise or on the price break down for intraday gains. Sell on the rise near or within the range of 41650----41700 with a stop loss of 41900 or sell if it moves below 40750 with a stop loss of 41000. 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.