A TECHNICAL UPDATE ON CNX-BANK NIFTY —16.6.2023

 

CNX-BANK NIFTY

Open---44054.35----High----44077.45----Low---43397.50---Close---43443.60on 15.6.2023.

Support: 43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance: 43578/ 43598.20/43614.65//43706.15/43874.05/44095.25/44151.80/43266/44340/44459.25/44498.60/44592/45525/45658.                       

 (Bold and underlined figures are most important)

 It was already in short correction and as expected it slipped into medium term correction today for its recent rise and went down by more than 500 points and the down move is likely to continue with in between relief rallies in coming days because it is below some of its short and medium term moving averages on the daily chart and most importantly all the four important advance technical indicators are  negative now, therefore all together it is very concerning and indicates that fall may continue. But it is important to mention here that it has very strong support at 43390—43109----43044---43038.25---42986.45 and it may bounce back from any of these points, please note that to keep the uptrend alive it has to sustain above the range of 43044---43038.25---42986.45 on the closing basis, else it may trigger fresh fall. Last but not the least technical indicators are pointing towards a sharp fall in the coming days as of now, which may please be noted.

TRADING TIPS:--

1. Safe traders should avoid long trade till correction completion sign are visible, However aggressive traders can try long trade in the range of 43390---43038 with a stop loss of 42880. Please note that as it is in corrective mode therefore long trade could be a risky affair.

2. As it is into short & medium correction mode therefore short trade can also be attempted on the price rise or on the price breakdown for intraday corrective gains. One can try short trade if it moves below 43390 with a stop loss of 43550 or sell on the rise near or within the range of 43800---43850 with a stop loss of 43960.

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.