A TECHNICAL UPDATE ON CNX-BANK NIFTY —9.5.2023

 

CNX-BANK NIFTY

Open---42796.85----High----43418.55----Low---42780.30---Close---43284 on 8.5.2023.

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: 43339.15/43483.45/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80/44461/44592.                     

 (Bold and underlined figures are most important)

As anticipated it bounced back today and decisively closed above its important & critical range of 43044---43038.25---42986.45 which is a positive sign. It closed with a gain of 622.80 points recovering the previous day’s losses by up to 60%. The up move intensity was less in it in comparison with CNX-Nifty where recovery was more than 100%, this indicate some fatigue in it. However the price action was good today, it is well above its short, medium and long term moving averages on the daily, weekly and monthly chart therefore it is likely to continue the up move in coming days but two out of four important technical indicators has turned negative, therefore price action has to watched for next 2 trading sessions for firmness of the up move, so it is suggested to be cautious in the long trade at this point of time. Kindly note that for the continuation of the up move it has to sustain above its aforesaid critical range on the closing basis, else the on-going up move may be jeopardy and it may trigger fresh fall. Please note that if it really has the strength it should not break the range of 43044---42986.45 now and if it does so then the on-going up move  may be over this time.

Moving up it will face stiff resistance at 43302.05---43395.05--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.

Moving down from here its critical support points would be at 43079---43044---43038.25----42986.45----42845----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 is already into very short, short and medium correction phase for its recent rise as it is below its threshold point of 43583---43320, 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 for its recent gains and this could be very concerning and may trigger a fresh fall. I once again reiterate that to keep the up momentum going it has to sustain above 43044 on the closing basis.

In view of the above observation, for safe traders long trade can be tried if it moves above 43420 and maintain for some time with a short stop loss of 43200 avoid buy on decline for the day. However, aggressive traders can try long trade on decline near or within the range of 43044---42986 but not below it with a short stop loss of 42600 this could be a risky trade for the day. Since it is into correction phase for its recent rise short trade can also be attempted on the reasonable rise at stiff resistance points or on price breakdown for intraday gains. The short, medium and long term technical setup is still looking good. The long term bias is still bullish. It is still buy on decline market but with caution now in the wake of two indicators turning negative. 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.