A TECHNICAL UPDATE ON CNX-BANK NIFTY —6.3.2023

 

CNX-BANK NIFTY

Open-40671.40-High-41390.15-Low-40605.35-Close-41251.35 on 3.3.2023.

Support:-41095.10/40819.15/40312.90/40288.90/39868.85/39600.25/39419.80/39419.80/39258.25/39197.20/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35..

Resistance: 41569.45/41643.90/41677.65/41729/41791.95/41829.60/41840.15/41877/41979.10/42078.90/42202.55/42555.15/42622.75/42716.80/42740/42880/42948/42986.45/43038.25/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.                       

 (Bold and underlined figures are most important)      

It was very volatile and had a wild swings both ways during the week but eventually ended the week on 3.3.2023 with a robust gain of 1341.95 points. Please note that it recovered last week losses completely and posted net gain for the week, which is a good sign.

It is still into deep corrective mode, but the good news is that pullback mode is on as  it is well above its short and major  pullback trigger point of 40162 & 40537 therefore if it holds 40537 then the up move is likely to extend, furthermore it is above its long term moving average range now which is placed between 41204---39102(figures will change every day, it is very strong support range ) for the day, it has moved above its short term moving average on the daily chart , almost all the important technical indicators have turned positive on the daily and the price action was also good, but indicators are still negative on the weekly and monthly chart. Therefore if the price action remains strong then it is likely to move up, else it will start to drift down again.

Moving down it will find support at 41204(upper band of long term moving average range, it changes every day)---41070---40769---40537---40162---39975---39600.25---39419.80---39102(lower band of long term moving average, it changes every day) ---38983----38739(these points could be possible buying points also), break below 41204 will signal weakness, break below 40537 will put the pullback rally into jeopardy , break below 40162 may end the pullback rally, break below 39600.25 & 39419.80 may trigger fresh fall.   Please note that 39102(lower band of the long term moving average, it changes every day) & 38739 are the last key support points 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 on the closing basis may end the long term uptrend for a reasonable length of time and fall may accelerate, which may be kept in mind.

Similarly moving up it will find resistance at 41375---41415---41567---41786---41979---42344---42555.15----42986.45---43039---43206(these points could be possible sell point also), if it moves above 41375 & 42555.15 and sustain on the closing basis then it will completely get out of the corrective mode, sustained break above 42986.45 & 43039 on the closing basis will put it back on the strong up track mode and finally if it moves above 43206 and sustain on the closing basis then there is a possibility that it could retest its all-time high of 44151.80 or may go beyond also.

In view of the above observation the deep down correction is on but it is in pullback mode also therefore both side trades can be attempted by the traders. The long trade can be tried at important and critical support points for the pullback gains. Similarly sell trade can be tried on the rise at critical resistance points or on the price breakdown. It is important to mention here that the pullback move is on but it is in deep corrective mode and you are well aware that pullback rallies are treacherous in nature and can fizzle out abruptly trapping the traders unaware, so be alert and extremely cautious in the long trade initiated for pullback gains.   Please do not trade without stop loss.

TRADING VIEW: - Long trade can be tried if it maintains above 41225 for some time with a stop loss of 41120 and can add on position if it moves above 41391 and sustain with a stop loss of 41160 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

Email—suranank@gmail.com

Mobile—8240951127/9831313654.