A TECHNICAL UPDATE ON CNX-BANK NIFTY—15.3.2023

 

CNX-BANK NIFTY

Open-39522.40-High-39768.50-Low-39132.60-Close-39411.40 on 14.3.2023.

Support:-39258.25/39197.20/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance:39419.80/39600.25/39868.85/ 40269/40288.90/40819.15/41095.10/41569.45/41643.90/41671.20/41677.65/41729/41791.95/41829.60/41840.15/41877/41979.10/42078.90/42202.55/42555.15/42622.75/42716.80/42740/42880/42948/42986.45/43038.25/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.          

 (Bold and underlined figures are most important)

It is in the deep corrective mode therefore all the figures & observation in my last post of 13.3.2023 will remain the same except for the following.

1. Its long term moving average range is between 41283---39295(figures will change every day) for the day.

2. Its short & major pullback trigger point are 39732 & 40317(figure will change if it breaks 39132.60) now.

The price action is terribly weak, it is near the lower band of the long term moving averages which is concerning. Furthermore  most importantly three out of four important technical indicators has turned negative  today but one key indicator is still positive on the daily chart despite sharp fall in the last few days ,which is indicating that it could possibly stage a temporary bounce back from here if it holds it very strong support range of 39295---38983---38739 .  But please note that sustained break below 39295 will threaten the long term uptrend and sustained break below 38739 will trigger fresh fall and finally sustained break below 37386.35 on the closing basis may end the long term uptrend for a reasonable length of time and downward journey may continue with intermittent relief rally. The bias is hugely bearish therefore sell on the rise or sell on the price breakdown strategy should be adopted for now. However aggressive traders can try long trade at critical support points with strict stop losses.

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.