A TECHNICAL UPDATE ON CNX-BANK NIFTY —5.6.2023

 

CNX-BANK NIFTY

Open---43997.30----High----44088.90----Low---43812.55---Close---43937.85 on 2.6.2023.

Support:43706.15/43614.65/43598.20/43578/ 43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance: 44095.25/44151.80/44498.60/44592/45525/45658.                  

 (Bold and underlined figures are most important)

I am back after three weeks vacation.

The overall technical setup looks o.k.as of now. Furthermore except for few short term moving averages it is almost above all its short, medium and long term moving averages on the daily, weekly and monthly chart, which indicates strength. It is still a buy on decline market, but certain important advance technical indicators are giving terribly weak signals on the daily chart, which is slightly concerning and indicate that it may correct sharply in coming days, however the good point is that the price action is not that weak and as long as it remains o.k. chances of continuation of the up move is there, but in light of weak technical indicators one should be extremely cautious in the long trade at this point of time. It is important to mention here that to pick up the strong up momentum again it has to move above 44151.80 and sustain on the closing basis. Please note that it is already into very short correction mode for its recent rise as it is below its threshold point of 44237 &44046 and break below 43706 may accelerate the fall.

Moving up from here it will face resistance at 44046---44151.80---44237---44359---44443---44498.60---44623---45383, it may correct at any of these points for a while and then may resume the up move again. Similarly moving down its strong and critical support points could be at 43900---43706.15---43390.30---43109.63---43044---43038.25---42986.45, it is already into short correction and break below 43706 will deepen it. Please note that to keep the uptrend on or alive it has to sustain above the range of 43044---42986.45 in fact above 43044 on the closing basis else break below 42986.45 may accelerate the fall.

In view of the above observation, for safe trader’s long trade can only be tried if it closes above 44151.80 else avoid. However aggressive traders can try long trade if it moves above 44151.80 and maintain for some time with a stop loss of 43890 or can try buy on decline if it holds 43800 for some time with a short stop loss of 43700. Please note that long trade on decline for the day could be a risky affair. Since it is in short correction mode, therefore short trade can also be attempted on the rise but not above 44151.80 with a stop loss of 44250 or sell below 43700 with a stop loss of 43830. Please note that it could be a risky trade but worth trying at this juncture. The short, medium and long term technical setup is still looking good. The long term bias is up 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.