A TECHNICAL UPDATE ON CNX-BANK NIFTY —11.4.2023

 

CNX-BANK NIFTY

Open-41116.15-High-41139.85-Low-40727.25-Close-40834.65 on 10.4.2023.

Support:-40819.15/40288.90/40269/40201.60/39868.85/39600.25/ 39513/39491/39419.80/39335/39273.75/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance: 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)      

After 7 days of strait rise as expected it corrected today and ended the day with a loss 206.35 point.

The short term technical setup is looking good as of now. It is still into deep corrective mode, but the pullback up move is on, it seems that the up move is near exhaustion but if it moves above 41060 and sustain on the closing basis then this rally can extend up to 41550---41700, it did move above 41060 levels intraday today but could not close above it and in fact corrected. Please note that moving up it will face very tough resistance in the range of 41315---41383 and if it moves above this range and sustain on the closing basis then it may strengthen the up momentum, else this rally may lose momentum as it corrected today and if it does not bounce back above 41315---41383 range in next 3-4 trading session and sustain on the closing basis then this would be an end for the on-going up move and down move may begin. So be alert and cautious.

Moving up its critical resistance points could be at 40950---41060---41275---41330---41352---41383---41568---41671---41979.10---42036---42556. The on-going pullback rally may exhaust at any of these points or earlier also, which please note. Similarly moving down its critical support points could be at 40802.25---40646---40608.65---40201---40142---39970---39921---39781---39717---39600---39419.80---39335---39273.75---38983---38739---38613---37386.Please note that sustained break below 40802 & 40646(figure may change) will push it into short & medium corrective mode for the recent rise ,sustained break below 40608.65 on the closing basis will be an alert sign for the up move exhaustion, sustained break below 39921 on the closing basis will weaken the pullback rally, break below 39717(figure will change every day) will potentially weaken it and 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 but be cautious in short trade as major pullback rally is on and also be alert in the long trade now as this up rally may be near exhaustion, therefore 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.