A TECHNICAL UPDATE ON CNX-BANK NIFTY —8.6.2023

 

CNX-BANK NIFTY

Open---44318.70----High----44346.30----Low---44143.50---Close---44275.30 on 7.6.2023.

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: 44340/44498.60/44592/45525/45658.               

 (Bold and underlined figures are most important)

The view and observation posted for 5.6.2023 will also be relevant for 8.6.2023 with the following addition or modification in figures and partly in views.

1. It is above its critical point of 44151.80 which is a good sign and also out of short correction also which is a positive indication. Please note that if it move above 44340 then it is likely to retest its recent all-time high of 44498.60 or may go beyond it also.

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 was shaky for few day but it has firmed up today is a good sign.

It is in the uptrend and price action has also firmed up, but in light of 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. Please note that if it corrects it could be moderate to sharp.

TRADING TIPS:--

1.  Long trade can be tried if it moves above 44350 and maintain for some time with a stop loss of 44130, avoid buy on decline for the day. However aggressive traders can try buy on decline near 44152 with a stop loss of 44030. Please note that buy on decline trade could be a risky trade for the day.

2. Short trade can be attempted on the rise near 44500 but not above it with a short stop loss of 44600.

3. Short trade can also be attempted if it moves below 44130 and maintain for some time with a stop loss of 44290. It could be risky trade but worth trying.

IMPORTANT NOTE:- It is in the uptrend ,therefore short trade could be a risky affair but it can be attempted at appropriate points with strict stop losses for intraday gains.

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.