A TECHNICAL UPDATE ON CNX-BANK NIFTY —6.2.2023

 

CNX-BANK NIFTY

Open-41019.35-High-41539.95-Low-40609.75-Close-41499.70 on 3.2.2023.

Support:-40839/40509/40288.90/40160.20/40148.80/39848.85/39759.15/39424.85/39419.80/39258.25/39197.20/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35..

Resistance: 41569.45/41643.90/41677.65/41829.60/41840.15/41877/42015.65/42202.55/42555.15/42622.75/42716.80/42740/42880/42948/42986.45/43038.25/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.                       

 (Bold and underlined figures are most important)

It is still in the corrective mode but pullback mode is on as it is well above its trigger point of 40283 & most important trigger point of 40537 for the pullback up move (these trigger points will be scale down once its break its recent low of 39419.80), furthermore it is also above its long term moving average range of 40833---38519(it changes every day). Therefore as long as it holds the upper band of the long term moving average range i.e.40833 and then 40537 chances of strong pullback rally will remain else it may start to drift down again.

Moving down it will find strong support at 41115---40819---40769---40655.05---40537----40283---39419.80---38519(these points could be possible buying points also),please note that 38519 is the last key support for the time being and sustained break below it could trigger fresh fall and finally 37386.35 is the very critical and most important support point and sustained break below it may end the long term uptrend for a reasonable length of time and fall may accelerate, which may be kept in mind, so 38519 & 37386.35 are very important and critical points. Similarly moving up it will find resistance at 41681---41786---42016---42215---42347---42986.45---43039---43079---43206---43578.40---(these points could be possible sell point also), please note that it is a pullback rally as of now therefore it can end at any of these points or earlier also but if it moves above 43039 and sustain on the closing basis then it will provide good strength for the up move to continue and finally if it moves above 43206 and sustain on the closing basis then it could retest its all-time high of 44151.40 or may go beyond it also.

The major important technical indicators are still weak on the daily, weekly and some on the monthly chart also, but after moving in a range for some day it closed firmly on 3.2.2023 and above its key points as mentioned above, so chances of up move to continue could be there but since it is in corrective mode, therefore it has to be seen in next 3-4 days how it behaves, whether it build up on yesterday’s gains or will fizzle out abruptly.

In view of the above observation the  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. But the pullback is on therefore aggressive traders can still try long trade at important support points but preferably above key point 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

Email—suranank@gmail.com

Mobile—8240951127/9831313654.