A TECHNICAL UPDATE ON CNX-BANK NIFTY—17.7.2023

 

CNX-BANK NIFTY

Open---44860.65---High—44923.85---Low---44547.80---Close—44819.30 on 14.7.2023.

Support:44812/44787.10/ 44747.35/44592/44508.40/44498.60/44459.25/44360/44266/44220.10/44151.80/44095.25/43874.05/43706.15/43614.65/43598.20/43397.50/43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance: 44939/44958/45179/45210/45416/45525/45655.50/45658/46268/46364/47575.                     

 (Bold and underlined figures are most important)

It had 2^nd up day in a row today and it ended the day with a gain of 154.25 points. It is not showing enough strength as of now to resume the strong up move shortly. It is already in the corrective mode. It is still below its monthly key point of 44958, furthermore it is also below some of its short term moving averages on the daily chart and most importantly three out of four important technical indicators are negative now, therefore all together it is a very weak sign and can drag it down further from here if it does not stage a sharp recovery in a short span of time and  move above  45000 at least and sustain on the closing basis then it may be able to move ahead further. Short term bias is down as of now.

Moving  down further from here its good support points could be at 44809.22---44787---44747---44695---44639.45---44492---44449----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 the correction mode, but it closed above its pullback threshold point of 44809.22 and if it holds this level on the closing basis then the chances of a pullback up move will be alive, break below 44695 & 44639.45 will be an alert sign and may trigger fresh fall, break below 44449 will weaken it further 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 44930---44971---45000---45110---45151----45179---45232---45394---45434---45525---45590----45655.50---45658----45938---46268---46364 it may correct at any of these points and then may resume the up move again. Please note that if it moves above 45151 and sustain on the closing basis then it will get out of  the corrective mode and if it moves above 45434 and sustain on the closing basis then it can retest its all-time high of 45655.50 or may go beyond it also.

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

IMPORTANT NOT:- Long trade below 44547 could be a risky bet for the entire week starting from 17.7.2023.

TRADING TIPS:--

1. Safe traders can try long trade if it closes above 44500 else avoid. However, aggressive traders can try long trade on sharp decline near or within the range of 44695---44550 and then near 44151.80 with a stop loss of 44400 & 43950 respectively or if it holds 44809.22 for some time with a stop loss of 44670, but please note that it could be a  risky trade for the day.

2. It is in the long term uptrend therefore short trade in general could be a risky affair but it is into corrective mode 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 45140---45190 with a stop loss of 45290 or sell if it moves below 44639 with a stop loss of 44821. 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.