A TECHNICAL VIEW ON CNX-BANK NIFTY FOR—23.1.2023

 

CNX-BANK NIFTY

Open-42516.05-High-42709.20-Low-42366.15-Close-42506.80 on 20.1.2023.

Support:-42202.55/42179/42052/41840.15/41829.60/41729/41569.45/41318.60/40819/

40160.20/39848.85/39759.15/39258.25/38437.95.

Resistance: 42555.15/42622.75/42716.80/42986.45/43038.25/43339.15/43515.05/43578.40/

43614.65/44151.80.

 (Bold and underlined figures are most important)

After making an all-time high of 44151.80 on 14.12.2022 it is into a corrective mode but the long term uptrend is still intact.

It is into corrective phase but pullback move is on and as long as it holds 42179 & 42052 on the closing basis chances are that the rally may continue but it will gain strength and pick up momentum only once it crosses it critical resistance points of 42555.15—42986.45---43038.25 and sustain on the closing basis. Similarly break below 42179 & 42052 can end the pullback up move and it may head down, but moving down it will find very strong support at 41840.15--41829.60 — 41729--41569.45 break below 41840.15--41829.60 will weaken it further and break 41569.45 may accelerate the fall, which may please be noted.

The important technical indicators are giving mixed signals on the weekly and monthly chart at this point of time but some indicators on the daily chart and price pattern are pointing that the up move could continue from here with intermittent correction if it holds the level of 42179 & 42052 on the closing basis. Therefore it is suggested that long trade can be tried near 42179 & 42052 with a proper stop loss and then near or within the range of 41840---41569 but not below 41569 with a stop loss of 41400 for pullback gains.

In view of the above observation it seems that the up rally is likely to continue provided it respects the important support points as mentioned above but how it will culminate has to be seen because the corrective up rallies are treacherous in the nature and can end abruptly trapping the trader unaware, so be alert and cautious in the long trade initiated for pullback gains.

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 favorable 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.