A TECHNICAL UPDATE ON CNX-BANK NIFTY —5.5.2023

 

CNX-BANK NIFTY

Open---43236.10----High----43739.80----Low---43213.95---Close---43685.45 on 4.5.2023.

Support: 43614.65/43578.40/43515.05/43498.05/43483.45/43339.15/43081/43044.07/43038.25/42986.45/42948/42880/42740/42716.80/42622.75/42555.15/42202.55/ - 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: 43853.40/44151.80/44461/44592.                     

 (Bold and underlined figures are most important)

As anticipated it bounced back today itself and closed with a decent gain of 372.75 points. Technically it is exhibiting extraordinary strength and now within the vicinity of its all-time high of 44151.80 and in all likelihood it is going to retest it or may establish a new high in the coming days.

Moving up from here this rally can extend to 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 43614.45---43583---43578.40---43515.65---43320---43044---43038.25---42986.45---42686----42555.15---42530. These are the important and critical support points and it can bounce back from any of these points. But break below 43583 will push it into very common correction for its recent rise and it may last a day or two, break below 43320 will push into 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 42686 will push it into medium correction for its recent rise, break below 42555.15 & 42530 will push it into deep corrective mode again for the past major gains and its recent gains and this could be very concerning. Please note 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 43740 and maintain for some time with a short stop loss of 43600 or can buy on decline at appropriate points or near or within the range of 43395--43312 but not below it with a stop loss of 43180. However, aggressive traders can also try long trade on decline near or within the range of 43044---42986 but not below it with a stop loss of 42800 this could be a risky trade but worth trying. 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 highly bullish as of now. Therefore it is a buy on decline market till it holds its key points and 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.