A TECHNICAL UPDATE ON CNX-BANK NIFTY—12.7.2023

 

CNX-BANK NIFTY

Open---44998---High—45139.45---Low---44663.05---Close---44745.05 on 11.7.2023.

Support: 44592/44508.40/44498.60/44459.25/44360/44266/44220.10/44151.80/44095.25/43874.05/43706.15/43614.65/43598.20/43397.50/43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance:44747.35/44787.10/ -44812/44939/44958/45179/45210/45416/45525/45655.50/45658/46268/46364/47575.                  

 (Bold and underlined figures are most important)

It is still in the short corrective mode and moved down for the 3^rd day in a row and ended the day with a loss of 115.80 points. It has closed below its key support point of 44844 for the on-going week and below its monthly key support points of 44787 & 44747 which is a very weak sign. Furthermore it has fallen below some of its short term moving averages on the daily chart after a long time which is concerning. The price action is weak as of now, therefore please note that if it does not stage a sharp recovery in next 2-3 trading sessions then correction may deepen from here.

Moving  down further from here its good support points could be at 44593---44492---44318----44151.80---43994(figures may change), these could be possible buying points also as  it may bounce back from any of these points and resume the up move again. It is already into short correction mode now, break below 44593 will be an alert sign, break below 44318 will be a warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 44151.80 & 43994 and sustain on the closing basis. 

Similarly moving up from here it may face resistance at 44747---44787---44844---44898---44930---44943---44965---45110----45151----45345---45416----45943---45525---45590----45655.50---45658----46268---46364 it may correct at any of these points and then may resume the up move again. Please note that 44898(figure may change) is its pullback threshold point and if it closes above it and sustain then it can stage a pullback up move and the upside could be 45042---45159--- 45276---45421---45457 and if it closes above 45457 and sustain then it could retest it all-time high of 45655.50 or may go beyond it also.

 Kindly note that it is in the strong long term uptrend and its buy on decline market in general, but it is in correction now, therefore buying can be considered on decline at appropriate strong support levels, although it is in an uptrend but how correction will culminate is not know because correction may take an ugly turn also sometimes, therefore watch out carefully and  structure your trade  accordingly with the help of above mentioned figures and range with strict stop losses.

TRADING TIPS:--

1. Safe traders can try long trade if it closes above 44960 else avoid. However, aggressive traders can also try long trade on sharp decline at appropriate points or near or within the range of 44595---44320 and then near 44151.80 with a stop loss of 44230 & 43950 respectively or if it moves above 44898 and maintain for some time with a stop loss of 44720, but please note that it could be a highly risky trade for the day. LONG TRADE BELOW 44844 COULD BE A RISKY TRADE FOR THE WEEK STARTING FROM 10.7.2023.

2. It is in the long term uptrend therefore short trade in general could be a risky affair but it is into correction now, therefore short trade can also 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 45150---45200 with a stop loss of 45350 or sell if it remains below 44844 with a stop loss of 44970. It could be a risky trade but worth trying 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.