A TECHNICAL UPDATE ON CNX-BANK NIFTY —5.4.2023

 

CNX-BANK NIFTY

Open-40695.80-High-40857.60-Low-40535.90-Close-40813.05 on 3.4.2023.

Support:-40288.90/40269/40201.60/39868.85/39600.25/ 39513/39491/39419.80/39335/39273.75/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance: 40819.15/40839/41095.10/41157.90/41318.60/41569.45/41643.90/41671.20/41677.65/41729/41791.95/41829.60/41840.15/41877/41979.10/42015.65/42078.90/42202.55/42555.15/42622.75/42716.80/42740/42880/42948/42986.45/43038.25/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.                 

 (Bold and underlined figures are most important)      

It opened on a positive note and moved in a short range and finally ended the day near the high with a gain of 204.40 points.

It is still into deep corrective mode, but the short term technical setup has improved  as it has moved above its short and some medium and long  term moving averages on the daily chart, it is well above its  major pullback trigger point of 39921 and last but not the least all the four important technical indicators are positive now, therefore as expected it rallied towards the end of the last week and it continued today also and this rally can extend further with in between short corrections provided it holds 40608.65 and then 39921 levels on the closing basis, sustained break below 39921 may trigger down move again. It is important to mention here that it is within its long term moving averages range, which is placed between 41283---39596(figures will change every day) for the day and it will gain good strength only if it moves above this range and sustain on the closing. It seems that it may cross this range in coming days if it manages to hold key points. So watch out.

Moving up its critical resistance points could be at 40950---41060---41352---41383---41568---41671---41979.10---42036---42556. The on-going up move is a pullback rally and it may exhaust at any of these points or earlier also, which please note. Similarly moving down its critical support points could be at 40695.80---40608.65---40201---40142---39970---39921---39781---39600---39419.80---39335---39273.75---38983---38739---38613---37386.Please note that sustained break below 40608.65 on the closing basis will indicate weakness in the up move, sustained break below 39921 on the closing basis will weaken the pullback rally, break below 39335 & 39273 on the closing basis may  end the hope of the continuation of the  pullback up move and sustained break below 38739 & 38613 will deepen the down move and can drag it down to 37386,which may be kept in mind.  

In view of the above observation the deep down correction is on but pullback rally is also on. Since it is in deep correction mode therefore it is a sell on the rise market or sell on the price breakdown in general and for the safe traders it is suggested to avoid long trade till a visible sign of correction completion emerges. However aggressive traders can try long trade at important and critical support points for the pullback gains. But be alert and extremely cautious in the long trade initiated for pullback gains because it is in deep corrective mode and you are well aware that pullback rallies are treacherous in nature and can end abruptly trapping the traders unaware. The long term bias is still bearish but the short term technical setup indicates that it may rally for some time provided it holds the key points as mentioned above.

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 favourable 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.