A TECHNICAL UPDATE ON CNX-BANK NIFTY—19.7.2023

 

CNX-BANK NIFTY

Open---45754.80---High—45905.85---Low---45286.50---Close—45410.85 on 18.7.2023.

Support: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: 45416/45525/ 45655.50/45658/45765/45810/46268/46364/47575.                  

 (Bold and underlined figures are most important)

It opened with an up gap today and went further up and hit a new all-time high of 45905.85 but it could not sustain at the upper level and slipped down and hit a low of 45286.50 for the day and finally ended the day with a loss of 38.90 points. Please note that it slipped again into short correction mode today for its recent rise as it closed below its threshold point of 45585.35(figure may change). The technical setup is still good for the continuation of the up move but today’s movement was slightly disturbing. Furthermore two out of five important indicators are still showing slight weakness, however if price action remains strong then it can turn positive also 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 because it can drag it down also. The long term bias is bullish as of now.

Moving up from here it may face resistance at 45434---45570---45585.35----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 45585.35 and sustains on the closing basis then it will get out of corrective mode and may regain the strong up momentum also.

Similarly moving  down further from here its good support points could be at 45342---45301---45121---44975---44958--44809.22---44787---44747---44683.70---44639.45---44613---44340---44184.77---44151.80(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 gotten into correction again and break below each support point will weaken it further, break below 44639.45 & 44613 may trigger fresh fall and finally it may lose upside steam for a while will get into deep & long correction mode if it moves below 44184.77&44151.80  and sustain on the closing basis. 

IMPORTANT NOTE: - Long trade below 45184 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 45590 and maintain for some time with a stop loss of 45360. However, aggressive traders can try long trade on sharp decline at appropriate points or near or within the range of 44639---44613 with a stop loss of 44450.

2. It is in the long term uptrend therefore short trade in general could be a risky affair. But it slipped into correction again; 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 45880---46050 with a stop loss of 46150. 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.