A TECHNICAL UPDATE ON CNX-BANK NIFTY—22.3.2023

 

CNX-BANK NIFTY

Open-39599.65-High-39970.90-Low-39366.30-Close-39894.70 on 21.3.2023.

Support:-39868.85/39600.25/ 39513/39491/39419.80/39335/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance: 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 20.3.2023 will remain the same except for the following.

1. Its long term moving average range is between 41274---39384(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 RESISTANCE POINTS IS:-39921---39971---40142---40270----40474----40503---40769. (Possible sell points also)

MOVING DOWN CRITICAL SUPPORT POINTS IS:-39781---39384---39335---38983---38739---38613--37386.35. (Possible buy points also)

It rallied today and closed with a gain of 532.75 points. Since it held its critical and strong support range of 38983---38739 yesterday, one key important technical indicator was also positive and it was above its short pullback trigger point of 39335, so the possibility of an up move was there and hence it rallied. But please note that a strong and meaningful pullback up move can only be expected if it moves above 39921 and sustain on the closing basis, else down move will continue with short relief rallies and as of now the indications are it may eventually break the aforesaid strong support range in coming week/months, so be watchful.

The bias is  bearish as of now and since  it is into deep corrective mode therefore sell on the rise or sell on the price breakdown strategy should be adopted till correction completion  or bottoming out signs are visible. However aggressive traders can try intraday long trade at critical support points with strict stop losses because short pullback up move is on, but be alert because long trade for pullback gains 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.