A TECHNICAL UPDATE ON CNX-BANK NIFTY—31.3.2023

 

CNX-BANK NIFTY

Open-39611.55-High-40055-Low-39609.55-Close-39910.15 on 29.3.2023.

Support:- 39868.85/39600.25/ 39513/39491/39419.80/39335/39273.75/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance:40201.60/ 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 27.3.2023 will remain the same except for the following.

1. Its long term moving average range is between 41269---39524(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.

3. out of four important technical indicators three are positive now, which is a good sign for an up move.

MOVING UP CRITICAL RESISTANCE POINTS IS: -39921---39983----40017---40142—40202---40503---40769---40950---41060---41383---41568. (Possible sell points also)

MOVING DOWN CRITICAL SUPPORT POINTS IS: -39781---39628---39524---39493----39335---39273.65---38983---38739---38613--37386.35. (Possible buy points also)

It continued the up move today and closed with a gain of 342.25 points. It is within its long term moving averages range, it is well above its short pullback trigger point of 39335, furthermore out of four important technical indicators three are positive on the daily chart now and most importantly it is holding on to its strong support range of 38983---38739--- 38613, therefore as long as it holds this range it may bounce back from this range as it has done couple of times in last few days. Please note that in view of the technical indicators turning positive the up rally may extend if it holds 39524 & 39335 on the closing basis, else it may slip down to its strong support range as mentioned above once again. But the strong, meaningful and lasting pullback up rally can happen only if it moves above 39921(major pullback trigger point) and sustain on the closing basis. It is important to mention here that technical indicators on the weekly & monthly chart as of now still indicates that it may eventually break the aforesaid strong support range in coming week/months, but it seems that the  up move for a while may be on the horizon, but be alert and watchful because overall bias is still bearish.

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