A TECHNICAL UPDATE ON CNX-BANK NIFTY —10.5.2023

 

CNX-BANK NIFTY

Open---43438.55----High----43533.25----Low---43125.85---Close---43198.15 on 9.5.2023.

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)

It opened on a positive note and went up further but could not sustain at the upper level and drifted down and at the end of the day closed with a loss of 85.85 points. The chart setup still looks good as it is above its short, medium and long term moving averages on the daily, weekly and monthly chart this is a positive sign, but two out of four important technical indicators has turned negative and indicates that it could break 42118 level in coming days, furthermore the price action was also timid, therefore there is a strong chance that it may start to head down any day, so it is suggested to be cautious in the long trade at this point of time. In fact it would be better to avoid long trade for a day or two and can attempt short trade at appropriate points with strict stop loss for intraday gains.

Kindly note that for the continuation of the up move it has to sustain above its critical range of 43044---42986.45 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 43310 and maintain for some time with a short stop loss of 43120 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 stop loss of 42640 this could be a highly risky trade for the day, which please note. 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. One can try short trade if it moves below 43110 with a stop loss of 43310. The short, medium and long term technical setup is still looking good. The long term bias is  bullish as of now. 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.