A TECHNICAL UPDATE ON CNX-BANK NIFTY—21.3.2023

 

CNX-BANK NIFTY

Open-39512.10-High-39512.10-Low-38941.90-Close-39361.95 on 20.3.2023.

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

Resistance:39419.80/39491/39513/39600.25/39868.85/ 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 41274---39365(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:-39365—39705---39921.

MOVING DOWN CRITICAL POINTS ARE:-38983---38739---38613--37386.35.

The technical setup and price action is already weak; therefore it could not build up on previous day gain and it opened on a weak note today and immediately slipped down further but staged a bounce back from the lower levels in the last hour of trade but ended the day with a loss of 236.15 points. It has just fallen below its long term moving average range, which is concerning, but it managed to hold its very strong support range of 38983---38739   and bounced from this range today, furthermore one key technical indicator in still positive after the fall and it is above its short pullback trigger point of 39335, so chance of an up move is still there provided it sustains the above mentioned range and above 39335. Please note that it may have a feeble up move if it holds 39335 levels but a strong and meaningful pullback up move can only happen if it moves above 39365&39921 and sustain on the closing basis, else down move will continue with 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. 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 intraday long trade at critical support points with strict stop losses, but long trade could be a risky affair.

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.