A TECHNICAL UPDATE ON CNX-BANK NIFTY —4.5.2023

 

CNX-BANK NIFTY

Open---43154.85----High----43354.95----Low---43078.15---Close---43312.70 on 3.5.2023.

Support: 43081/43044.07/43038.25/42986.45/42948/42880/42740/42716.80/42622.75/42555.15/42202.55/ - 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: 43339.15/43483.45/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.                   

 (Bold and underlined figures are most important)

As envisaged after 6 days of straight rise it corrected today and ended the day with a meagre loss of 39.40 points. It is exhibiting extraordinary strength so this corrective move may possibly end in next 1 to 2 trading sessions and it may resume the up move again. The overall technical setup is on the firm footing; therefore it is likely to continue the up move in coming days. It is important to mention here that the uptrend has no threat till it holds the range of 43044---43038.25----42986.45 on the closing basis (it did came near the upper band of this range today but bounced back) and if it does so then it is likely to retest its all-time high of 44151.80 or may go beyond it also in coming days.

Moving up from here this rally can extend to 43515.65---43578.40---43614.45---43730----44151.80----44461---44592---45525---45658---46268---.The on-going rally can correct at any of these points or earlier also and then may resume the up move again or it may exhaust also for a while. The bias is hugely bullish as of now.

Moving down its critical support points would be at 43125---43044---43038.25---42986.45---42845---42694----42555.15---42490----42334, break below 43125 will push it into very short correction for its recent rise, sustained break below the range of 43044---43038.25---42986.45 will indicate fatigue and exhaustion for the on-going up move and may put the uptrend in jeopardy, break below 42845 will push it into deep short correction mode for its recent rise, break below 42555.15 will push it into deep corrective mode again for the past major gains and this could be concerning, break below 42490 & 42334(figure may change) will push it into  medium and deep correction mode for its recent rise. I once again reiterate that for the continuation of the up move it has to sustain above the range of 43044---43038.25---42986.45 on the closing basis, else the on-going up move may be in trouble.

In view of the above observation, long trade can be tried if it moves above 43395 and maintain for some time with a short stop loss of 43200 or can buy on decline at appropriate points or near or within the range of 43044--42987 but not below it with a stop loss of 42790. Please note that it is in the uptrend 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 short, medium and long term technical setup is bullish as of now. Therefore it is a buy on decline market till it holds its key range 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.