A TECHNICAL UPDATE ON CNX-BANK NIFTY—18.7.2023

 

CNX-BANK NIFTY

Open---44951.20---High—45556.45---Low---44695.05---Close—45449.75 on 17.7.2023.

Support:45525/45416/45210/45179/44958/44939/44812/44787.10/ 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: 45655.50/45658/45765/45810/46268/46364/47575.                 

 (Bold and underlined figures are most important)

It corrected and consolidated in a zigzag manner for the last 8 days and staged a sharp bounce back today and ended the day with a handsome gain of 630.45 points. Please note that with today’s up move it is out of the corrective mode, it is above its all moving averages move, furthermore it has closed above its most critical point of 45434 and if it sustains above it then it can retest its all-time high of 45655.50 or may go beyond it also and looking at today’s move it is very much likely to happen in coming days. Please note that the only concern is that two out of five important indicators are still showing slight weakness, one indicator will get positive if it closes above 45570, however if price action remains strong then it can turn positive in coming days. It is in the strong long term uptrend and it is buying on decline market in general as of now, but in view of two weak indicators one should be slightly alert and cautious in the long trades. The long term bias is bullish as of now.

Moving up from here it may face resistance at 45570---45590----45655.50---45658----45938---46268---46364 it may correct at any of these points and then may resume the up move again.  

Similarly moving  down further from here its good support points could be at 45434---45394---45318---45232--- 45184---45151---45110---45025---44959--44930---44809.22---44787---44747---44639.45---44525---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. Please note that if it holds 45434 on the closing basis up move will be on, but break below 45318 will push it into short corrective mode for its very recent rise and thereafter break below each support point will weaken it further, break below 44639.45 & 44525 may trigger fresh fall and finally it may lose upside steam for a while if it moves below 44151.80 & 43994 and sustain on the closing basis. 

IMPORTANT NOTE:- Long trade below 44958 could be a risky bet for the day.

TRADING TIPS:--

1. Safe traders can try long trade on decline near or within the range of 45318---45184 with a stop loss of 44940 or if it move above 45570 and maintain for some time with a stop loss of 45400. However, aggressive traders can try long trade on sharp decline at appropriate points or near or within the range of 44695---44639 with a stop loss of 44450.

2. It is in the long term uptrend therefore short trade in general could be a risky affair. However, 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 45850---45950 with a stop loss of 46100. 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.