Thursday, 8 June 2023

A TECHNICAL UPDATE ON CNX-BANK NIFTY —9.6.2023

 

CNX-BANK NIFTY

Open---44208.30----High----44459.25----Low---43917.90---Close---43995.25 on 8.6.2023.

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

Resistance: 44095.25/44151.80/44340/44498.60/44592/45525/45658.                   

 (Bold and underlined figures are most important)

The view and observation posted for 5.6.2023 will also be relevant for 9.6.2023 with the following addition or modification in figures and partly in views.

As expected it gotten into correction today for its very recent rise and decisively fell below its critical point of 44151.80 which is concerning, however the uptrend is still intact as of now. The correction may last for 2-3 trading sessions and it will get out of correction if it closes above 44237 and if it does so then it may resume the up move again otherwise it may move down It is important to mention here that to put it back on strong up momentum track it has to bounce back above its critical point of 44151.80---44237—44340 in next 2-3 trading sessions, else correction may deepen. 

1.  The price action showed distinct weakness today as it closed way below its yesterday’s low of 44143.50 this is concerning.

2. It fell below some of it short term moving averages on the daily chart today, which is a weak sign.

It is in the uptrend, but in light of terribly weak technical indicators on the daily chart correction could last for few days and this time intensity of the correction could be moderate to sharp if it does not bounce back above its key points mentioned above in next 2-3 trading sessions, so be cautious in the long trade at this point of time.

TRADING TIPS:--

1. Safe traders should avoid long trade till it closes above 44276. However aggressive traders can try buy on decline near 43800 with a stop loss of 43680 or can try long trade if it moves above 44152 and maintain for some time with a stop loss of 43960. Please note that buy on decline trade could be a risky trade for the day.

2. As it has gotten into short correction therefore short trade can also be attempted on the price breakdown for intraday gain. One can try to sell if it moves below 43900 and maintain for some time with a stop loss of 44130.

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.

 

 

 

 

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