A TECHNICAL UPDATE ON CNX-BANK NIFTY—23.3.2023

 

CNX-BANK NIFTY

Open-40036-High-40085.60-Low-39837.80-Close-39999.05 on 22.3.2023.

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 41276---39408(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: - 40142---40270----40474----40503---40769---40950. (Possible sell points also)

MOVING DOWN CRITICAL SUPPORT POINTS IS:- 39971---39921---39781---39408---39335---38983---38739---38613--37386.35. (Possible buy points also)

The yesterday up move continued today but with slower pace and it closed with a gain of 104.35 points. It is way above its strong support range of 39408---39335---38983---38739  , two key important technical indicator are positive now and most importantly  it has moved above its major pullback trigger point of 39921 and if it manages to hold this point on the closing basis then a strong and meaningful pullback up move may continue, but chance of pullback up move will be alive till it holds 39408 & 39335 else  it will again start to move down move  with short relief rallies because technical indicators on the weekly & monthly chart as of now indicates that it may eventually break the aforesaid strong support range in coming week/months, so be alert and 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 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.