A TECHNICAL UPDATE ON CNX-BANK NIFTY —8.5.2023

 

CNX-BANK NIFTY

Open---43110.65----High----43588----Low---42582.20---Close---42661.20 on 5.5.2023.

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

 (Bold and underlined figures are most important)

It reacted to the world market cues and corrected today and closed with a huge loss of 1024.25 points. It exhibited volatility and the price action was terribly weak and most importantly it closed decisively below its critical range of 43044---43038.25---42986.45 which is highly concerning for the continuation of the up move. Please note that it is down but not out of the up move race as yet because except for one all important technical indicators are positive on the daily, weekly and monthly chart, furthermore except for few short term averages it is above all short, medium and long term moving average on the daily, weekly and monthly chart, therefore despite today’s big fall it stand a good chance that it may bounce back above the aforesaid critical range in next 1-2 trading session else the on-going up move may be in trouble.

Moving down from here its critical support points would be at 42582--- 42555.15---42530----42317---42233---41962.35---41671.20. These are the important and critical support points and it can bounce back from any of these points. It has gotten into very short, short and medium correction phase for its recent rise as it is below its threshold point of 43583---43320 & 42686, break below 42555.15 & 42530 will push it into deep corrective mode again for the past major gains and for its recent gains and this could be very concerning and may trigger a fresh fall.

Moving up it will face stiff resistance at 42845----42986.45----43038.25----43044---43079---43515.65---43578.40---43583---43614.45---43739.80----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. Please note that to put it back on the up track it has to close above 43044 and sustain on the closing basis.

In view of the above observation, for safe traders long trade should be avoided till it closes above 43044, however, aggressive traders can try long trade if it holds the range of 42582---42530 for some time but not below it with a short stop loss of 42400 this could be a risky trade for the day, but worth trying for pullback gains. Since it gotten into correction phase today for its recent rise short trade can also be attempted on the reasonable rise or on price breakdown for intraday gains. So, one can go short below 42530 with a stop loss of 42700 for intraday gains. The short, medium and long term technical setup is still looking good but today’s price action has given a jolt. So watch out for a day or two for clear direction. The long term bias is still bullish. 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 favorable 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.