A TECHNICAL UPDATE ON CNX-BANK NIFTY —28.4.2023

 

CNX-BANK NIFTY

Open-42753.90-High-43043.40-Low-42736.60-Close-43000.85 on 27.4.2023.

Support:42986.45/42948/42880/42740/42716.80/42622.75/42555.15/42202.55/ - 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.

Resistance: 43038.25/43044.07/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.                

 (Bold and underlined figures are most important)

It continued the up move today and ended the day with a gain of 170.95 points. It is exhibiting extraordinary strength; therefore it is most likely to move up further for sure from here in coming days with intermittent correction. Please note that it is out of all corrective mode and if manages to hold 42555.15 levels on the closing basis, then this rally can definitely extend to 43044---43060---43079---43578.40---43614.45---44151.80. 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. But it is important to mention here that if it moves above 43044 (it almost hit this point today and closed just below it) 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, which please note. The bias is bullish as of now.

Moving down its critical support points would be at 42987---42845---42788---42604---42555.15---42497---42154---42015---41998----41962---41840---41829----41799---41746---41494 , break below 42788(figure may change) will push it into very short correction for the recent rise and it may last a day or two at max, break below 42555.15 will push it into deep corrective mode again and this could be concerning, break below 42497---42154 & 41998(figure may change) will push it into short, medium and deep correction mode for its recent rise and finally sustained break below 41538(figure will change every day) on the closing basis will threaten the uptrend. Please note that in worst case scenario to continue the up move it has to maintain above 41962 and then above the range of 41840—41829 & 41799 on the closing basis, else it may lose upside steam and may head downward. It is important to mention here that it has good strength therefore it is not likely to break 42555.15 levels on the closing basis as of now.

In view of the above observation, for safe traders long trade can be tried if it moves above 43044 and maintain for some time with a stop loss of 42680 or can buy on decline at appropriate points or near 42555.15 but not below it with a stop loss of 42400. However, aggressive traders can also try buy on decline near 42270 but not below it with a stop loss of 42090 it could be a risky trade mind you but worth trying. Please note that it is out of corrective mode now therefore avoid short trade in general but it can be tried at critical resistance point with strict short stop loss for intraday gains, but be alert and cautious in short trade at this point of time. The long term technical setup is showing marked improvement and chart structure is also looking good and bullish as of now; short term technical setup is already strong and indicates that it may rally further 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.