A TECHNICAL UPDATE ON CNX-BANK NIFTY —24.4.2023

 

CNX-BANK NIFTY

Open-42252.55-High-42382.15-Low-41962.35-Close-42118 on 21.4.2023.

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 corrected again today and closed with a loss of 151.50 points, after a long time it has broken its recent bottom of 42154 on the line chart, which is a slightly weak sign, but despite it the overall technical setup is still looking good and showing strength and indicates that it may continue the up move provided it holds the key points as mentioned below. Please note that its broad range for the week starting from 24.4.2023 is between 42604---42555---41840---41829---41799 and breakout on the either side will decide further direction for it.

It is still into deep corrective mode and also in short correction for its recent rise, 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 or may exhaust also for a while also. 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 41840----41829----41818---41799---41662---41605---41451---41352 , sustained break below 41840—41829 &41799 will be an alert sign for the exhaustion of the up move, break below 41790(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, break below 41662(figure may change) will push it into deep correction for its recent rise, and finally sustained break below 41451 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 to sustain above this range 41829—41840 & 41799 on the closing basis, else it may lose upside steam and may head downward.

In view of the above observation, for safe traders it is suggested that long trade can only be tried if it moves above 42280 and maintain for some time with a stop loss of 42070, avoid buy on decline for the day. However, aggressive traders can also try buy on decline near or within the range of 41840---829---799 but not below it with a stop loss of 41600, it could be a risky trade but worth trying. Since it is still into deep corrective mode and also in short correction for its recent rise, 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 also 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.