A TECHNICAL VIEW ON CNX-BANK NIFTY —30.1.2023

 

CNX-BANK NIFTY

Open-41382.35-High-41417.90-Low-40148.80-Close-40345.30 on 27.1.2023.

Support:-40288.90/40160.20/40148.80/39848.85/39759.15/39424.85/39258.25/39197.20/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35..

Resistance: 40509/40839/41643.90/41677.65/41829.60/41840.15/41877/42202.55/42555.15/42622.75/42716.80/42740/42880/42948/42986.45/43038.25/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.                       

 (Bold and underlined figures are most important)

Further to my last post on 23.1.2023, it was in corrective mode but the pullback move was on ,but since it could not cross its important resistance points of 42555.15—42986.45---43038.25 on the closing basis the pullback up move fizzled out and it slipped into deep corrective mode during the week ended on 27.1.2023.

Furthermore it has slipped within its long term moving average range of 40727---38720(figure may change every day) which is a very weak sign and sustained break below 38720 will potentially threaten the long term uptrend and finally sustained break below 37386.35 on the closing basis may end the long term uptrend and a steady down move may begin, which may please be noted. Therefore 38720 & 37386.35 could be considered as strong support points and it could bounce back from these points and the other important bounce back support points  could be 39970---38983---38739. The on-going trend is down but sustained close above 40840 & 41094(figure will be scaled down if it breaks its recent low of 40148.80) may trigger a short or moderate pullback rally.

The major important technical indicators are giving weak signal on the daily, weekly and monthly chart, therefore down move is likely to continue with short relief rallies from time to time.

In view of the above observation the deep down correction is on therefore it is a sell on the rise market or sell on the price breakdown in general and for the safe traders it is suggested to avoid long trade till a visible sign of correction completion emerges. However aggressive traders can still try long trade at important support points or above pullback threshold points as mentioned above for the pullback gains. But it is important to mention here that the pullback 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. Please do not trade without stop loss.

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.