A TECHNICAL UPDATE ON CNX-BANK NIFTY —12.4.2023

 

CNX-BANK NIFTY

Open-41232-High-41403.25-Low-40990.20-Close-41366.50 on 11.4.2023.

Support:- 41311/41318.60/41157.90/41095.10/40839/40819.15/40288.90/40269/40201.60/39868.85/39600.25/ 39513/39491/39419.80/39335/39273.75/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance: 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 a day correction yesterday as envisaged it rallied today and ended the day with a decent gain of 531.85 points.

The short term technical setup is looking good and it has also given upside breakout from it’s down trend line today which is an extremely positive sign and if it sustains the breakout then it may witness good upside from here. It is still into deep corrective mode, but the major pullback up move is also on and if the rally continues it may get out of the corrective mode also. The complete correction completion points are 41352 & 42555.15, since it closed above its critical point of 41060 and it almost crossed its tough resistance range of 41315---41383, it did hit an intraday high of 41403.25 today. Please note that if it moves above 41383 and sustain then the up rally may strengthen further and it can extend to 41671---42031---42555. It is important to mention here that if it moves above 43044 and sustain on the closing basis then it will be on the strong up momentum track.

Moving up its critical resistance points could be at 41383---41568---41671---41979.10---42036---42555.15. The on-going pullback rally may exhaust or correct at any of these points or earlier also, which please note. Similarly moving down its critical support points could be at 41352---41330---41275---41060---40950---40802.25---40646---40608.65---40201---40142---39970---39921---39781---39760---39600---39419.80---39335---39273.75---38983---38739---38613---37386.Please note that sustained break below 41311(figure will change every day) will be a sign of exhaustion for the on-going up move, sustained break below 40901 & 40745(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 weaken it further, sustained break below 39921 on the closing basis will weaken the pullback rally, break below 39760(figure will change every day) will potentially threaten the long term uptrend.  

In view of the above observation for safe traders, it is suggested that long trade can be tried if it hold the range of 41311---41275 for some time or if it moves above 41420 and maintain for some time; however aggressive traders can also try buy on decline near or within the range of 40990--40834 but not below this as of now. Since it is still into deep corrective mode therefore short trade can also be tried on the rise at appropriate points or on price breakdown for intraday gains. The long term bias is still bearish but chart structure is improving, short term technical setup indicates that it may rally for some time with intermittent correction provided it holds the key points as mentioned above. Do not trade without proper stop loss.

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.