A TECHNICAL UPDATE ON CNX-BANK NIFTY—30.6.2023

 

CNX-BANK NIFTY

Open---44419.50---High—44508.40---Low---44163.20---Close---44327.80 on 28.6.2023.

Support: 44266/44220.10/44151.80/44095.25/43874.05/43706.15/43614.65/43598.20/43397.50/43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance:44360/44459.25/44498.60/44508.40/44592/44812/44939/45179/45210/45525/45658/46268.             

 (Bold and underlined figures are most important)

It hit a new all-time high of 44508.40 but closed below its previous high of 44498.60 however it closed above its critical points of 44151.80----44234---44268---44275 which is indicating strength for the continuation of the up move. The overall chart setup is strong, moving average placement is good  and price action is also good but two out of four technical indicators are still negative despite good rise today, however if  the price action and moving average placements  remains good indicators may turn positive in coming days. So watch out.

Moving up from here it may face resistance at 44459.25---44498.60----44508.40----44592---44812. Similarly going down its support points could be at 44275---44268---44231---44151.80---44011----43910(figures may change), break below 44275 & 44268 will push it into very short correction for its recent rise, break below 44151.80 will be an alert point, break below 44010 will indicate weakness and finally it may lose upside steam for a while if it moves below 43910 and sustain on the closing basis. 

It is in the long term uptrend and buys on decline market now but in view of weak technical indicators now, one should be vigilant and not fearless in the long trade at this point of time.

TRADING TIPS:--

1. Long trade can be tried on decline at appropriate points or near 44050 and not below it with a stop loss of 43850 or if it moves above 44509 and maintain for some time with a stop loss of 44300.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it can be attempted on the reasonable rise or on the price breakdown for intraday corrective gains. Short trade can be tried on the rise near or within the range of 44650----44700 with a stop loss of 44850.

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.