A TECHNICAL UPDATE ON CNX-BANK NIFTY —17.4.2023

 

CNX-BANK NIFTY

Open-41680.10-High-42196.20-Low-41502.65-Close-42132.55 on 13.4.2023.

Support: - 42078.90/42015.65/41979.10/41877/41840.15/41829.60/41791.95/41729/41677.65/41671.20/41643.90/41569.45/41335/41318.60/41157.90/41095.10/40839/40819.15/40288.90/40269/40201.60/39868.85/39600.25/ 39513/39491/39419.80/39335/39273.75/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.

Resistance: 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 exhibiting good strength and it continued the up move and ended the day on a firm note and near the high of the day with a decent gain of 574.60 points.

The short term technical setup is looking good, it is above its rising channel and major downtrend line also and if it remains above it 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 point is 42555.15. Please note that if it moves above 42555.15 and sustain on the closing basis then this rally can extend to 42845---42987---43044. The on-going rally can correct at any of these points or earlier and then may resume the up move again or may exhaust also for a while. 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 and it can retest its all-time high of 44151.80 or may go beyond it also.

Moving down its critical support points could be at 41840----41829----41550---41507---41352----41175---40835.Please note that sustained break below 41840 & 41829 will be an alert sign, break below 41550(figure will change every day) which is rising channel support for the day will be a weak sign for the up move to continue, sustained break below 41507 will push it into short corrective mode for its recent rise, sustained break below 41353---41350(many important points are clustered in this range) on the closing basis will weaken it and may drag it down further. Please note that to continue the up move it has sustain above its rising channel mark and finally above 41350 levels on the closing basis, else it may lose upside steam and a close below 40834 may end the up move or slow down the pace of the up move. The overall technical setup indicates further upside is likely in coming days.

In view of the above observation, it is suggested that long trade can be tried on decline at appropriate points or near 41550 but not below it or if it moves above 42203 and maintain for some time. 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 showing marked improvement and chart structure is looking fairly good as of now; short term technical setup is strong and indicates that it may rally for some time with intermittent correction provided it holds the key points on decline 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.