A TECHNICAL UPDATE ON CNX-BANK NIFTY—26.6.2023

 

CNX-BANK NIFTY

Open---43641.60---High—43824.10---Low---43519.55---Close---43622.90 on 23.6.2023.

Support: 43614.65/43598.20/43397.50/43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance: 43706.15/43874.05/44095.25/44151.80/44220.10/43266/44340/44459.25/44498.60/44592/45525/45658.                       

 (Bold and underlined figures are most important)

It is still into short and medium correction mode for its recent rise. Furthermore it is still below some of its short and medium term moving averages on the daily chart, making lower top & bottom on the line and bar chart and most importantly all the four important advance technical indicators are still negative, which is very concerning and indicates that it could still witness further sharp fall from here and may seek much lower levels in coming days, if it does not bounce back sharply in a short span of time and move above some of the key points as mentioned below. Therefore all together it is exhibiting weakness now. But the long term bias is up as of now.

Its range for the week starting from 26.6.2023 is between 43345---44045 and it may oscillate between the range during the week, so one can trade the range. But since it ended the last week near the lower band of the range therefore chance of going down further from here is pretty bright at this point of time and break below 43345 can drag it down further.

Moving down it has very strong support at 43618---43390—43345---43109----43044---43038.25---42986.45, it may bounce back from any of these points but break below each point will deepen the correction, 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. I once again reiterate that technical indicators are pointing towards a sharp fall in the coming days as of now; therefore one should be alert and cautious in the long trade at this point of time.

Moving up it has to close above 43995(figure may change) to gain some strength, but it will get out of the corrective mode and may pick up momentum only if it moves above 44151.80---44237--- 44268 and sustain on the closing basis. However, if it manages to hold above 43618(figure may change) on the closing basis then the chance of a pullback up move will be there, else it may drift down further. 

IMPORTANT NOTE:-- It is in the long term uptrend and buy on decline market, but it is in correction mode now, therefore at this point it is suggested to be extra alert and cautious in the long trade and safe traders should avoid it because correction may take an ugly turn also therefore it has to be seen how correction  culminates eventually. Please note that market will give ample signal of correction completion. So watch out. 

TRADING TIPS:--

1. Safe traders should avoid long trade till correction completion sign are visible or it closes above 44151.80 at least. However, aggressive traders can try long trade on decline near or within the range of 43390---43345---43109---43044 with a stop loss of 42900 or if it holds the level of 43618 for some time with a stop loss of 43500. Please note that as it is in corrective mode therefore long trade could be a risky affair, so be alert and cautious.

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 on the rise near or within the range of 43925---43975 with a stop loss of 44060 or sell if it maintains below 43618 for some time with a stop loss of 43820 or sell below 43345 with a stop loss of 43630..

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.