A TECHNICAL UPDATE ON CNX-BANK NIFTY —12.6.2023

 

CNX-BANK NIFTY

Open---44045.75----High----44220.10----Low---43932.60---Close---43989 on 9.6.2023.

Support:43917.90/43706.15/43614.65/43598.20/43578/ 43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance: 44095.25/44151.80/44266.15/44498.60/44592/45525/45658.              

 (Bold and underlined figures are most important)

The long term technical setup still looks good but in last two days it has gotten into short correction for its recent rise. Furthermore except for few short terms moving averages on the daily chart it is almost above all its short, medium and long term moving averages on the daily, weekly and monthly chart which indicates strength. But please note that 3 out of 4   important advance technical indicators have turned negative on the daily chart, the price action is also weakening, so all together the situation at this point of time is slightly concerning and indicate that it may moderately or sharply correct further from here in coming days. It is in short correction now and it may last for few days but if it has the strength then this correction should not last for more than 3-4 days in all and it should bounce back sharply and should move above its key figures as mentioned below. The long term trend is up as of now.

Moving up from here it will face resistance at 44046---44151.80---44237---44340---44459.25---44498.60---44623---45383, please note that to get out of complete corrective mode and to pick up strong up momentum again it has to move above 44151.80 & 44237  and sustain on the closing basis, else it may move sideways or drift down.

Similarly moving down its strong and critical support points could be at 43917.90---43706.15---43390.30---43109.63---43044---43038.25---42986.45, it is already into short correction and break below 43706 and other support points will deepen it further. 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 on decline if it holds 43917 or 43790 for some time with a stop loss of 43690. Please note that long trade on decline and below 43917 could be a risky affair for the day. Since it is in short correction mode, therefore short trade can also be attempted on the rise near but not above 44237 with a short stop loss of 44350 or sell below 43917 or below 43706 with a short stop loss of 44060 & 43800 respectively. Do not trade without proper stop loss.

IMPORTANT NOTE: - It is in the uptrend but since it is into short correction mode, therefore one should be alert and cautious in the long trade at this point of time.

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.