A TECHNICAL UPDATE ON CNX-BANK NIFTY —7.6.2023

 

CNX-BANK NIFTY

Open---44156.70----High----44236.20----Low---44009.70---Close---44164.55 on 6.6.2023.

Support:44151.80/44095.25/43706.15/43614.65/43598.20/43578/ 43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

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

 (Bold and underlined figures are most important)

The view and observation posted for 5.6.2023 will also be relevant for 7.6.2023 with the following addition or modification in figures and partly in views.

1. It has closed above its first critical point of 44151.80 which is a good sign, but it is still into short corrective mode for its recent rise and to get out of corrective mode it has close above 44237  and to pick up strong up momentum it has to move above 44498.60 and sustain on the closing basis.

2. It is above all its short, medium and long term moving averages now, which is a good and strong sign.

3.  The price action is slightly shaky and wild but not weak as of now but break below 44046 may indicate that price action can weaken and finally break below 43706 may make it vulnerable for the down slide. Please note that technical indicators weakness will come into play only once the price action weakens, so watch out.

It is in the uptrend but in light of terrible weak technical indicators on the daily chart correction could creep in any time, so be cautious in the long trade at this point of time.

TRADING TIPS:--

1. Long trade can be tried if it holds 44151.80 levels for some time with a stop loss of 44000.

2. Long trade can be tried if it moves above 44267 and maintain for some time with a stop loss of 44095, else avoid.

3. Short trade can also be attempted if it moves below 44151 and maintain for some time with a stop loss of 44270. It could be risky trade but worth trying.

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.