A TECHNICAL UPDATE ON CNX-BANK NIFTY —21.4.2023

 

CNX-BANK NIFTY

Open-42218.50-High-42378.15-Low-42108.85-Close-42269.50 on 20.4.2023.

Support:42202.55/ - 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: 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 moved up today after yesterday’s correction and closed with a moderate gain of 115.50 points, which is good sign. But it has broken its very short and steep rising trend line today, which is slightly concerning. Furthermore it has been moving sideways for the last 3 days or one can say making a flag in the range of  42604---41799 ,so now breakout on the either side from the range will decide the further direction of the market. It is therefore suggested to play the range both side till breakout happens.

The short term technical setup is looking good. 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 & 42604 and sustain on the closing basis then this rally can extend to 42845---42815--42987---43044. The on-going rally can correct at any of these points or earlier also and then may resume the up move again as it did today after yesterdays correction 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 would be at 42161---42154---41840----41829----41818---41799---41662---41605---41352----41175---40835 , break below 42161 will push it into very short correction for its recent rise, sustained break below 41840 & 41829 will be an alert sign for the exhaustion of the up move, break below 41818 & 41662(figures may change) will push it into medium & deep correction for its recent rise, break below 41730(figure will change every day) which is rising channel support for the day will be a very weak sign for the up move to continue and finally sustained break below 41433 on the closing basis will threaten the uptrend and break below 41352(many important support points are clustered at this point)  may drag it down further and faster. Please note that to continue the up move it has sustain above 41829 & 41840 levels on the closing basis, else it may lose upside steam and may head downward. The overall technical setup indicates further upside is likely in coming days as of now. Please be alert and exit long trades if it happens to closes below 42154

In view of the above observation, it is suggested that long trade can be tried if it maintains above 42270 for some time with a stop loss of 42070 or can buy on decline near 42154 but not below it with a stop loss of 42015. 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.