A TECHNICAL UPDATE ON CNX-BANK NIFTY—17.3.2023

 

CNX-BANK NIFTY

Open-39061.70-High-39381.40-Low-38613.15-Close-39132.60 on 16.3.2023.

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

Resistance:39197.20/39258.25/39419.80/39600.25/39868.85/ 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 41279---39345(figures will change every day) for the day.

2. Its short & major pullback trigger point are 39335 & 39921(figure will change if it breaks 38613.15) now.

MOVING UP CRITICAL POINTS ARE:-39335—39345—39921.

After five days of strait fall it gave a very weak bounce back today. The technical setup and price action is already weak but it held its very strong support  range of  38983---38739   after an intraday break  , furthermore one key technical in is still positive , so chance of a further up move is still there provided it sustains above range on the closing basis. Please note that if it closes above 39335 and sustain then a feeble up move can be there but a strong and meaningful up move can only be expected if it moves above 39921 and sustain on the closing basis, else down move will continue with in between short relief rallies and it may eventually break the aforesaid strong support range in coming days and then it may head for its most critical and important support point of 37386.35 and sustained break below it may end the long term uptrend for a reasonable length of time, which please note. So please be extra alert in short trade near or within the above mentioned support range and in long trade also because it is in deep down correction mode and some important technical indicators on the weekly & monthly chart as of now indicates that steep fall may be ahead and it may seek much lower levels then mentioned above. So be watchful.

The bias is hugely bearish as of now 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, but it could be a risky affair mind you.

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.