A TECHNICAL UPDATE ON CNX-BANK NIFTY—20.7.2023

 

CNX-BANK NIFTY

Open---45622.50---High—45669.05---Low---45433---Close—45669.30 on 19.7.2023.

Support:-45658/45655.50/45585.35/ 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: 45765/45810/45957/46079/46268/46364/47448/47575/47808/48228.             

 (Bold and underlined figures are most important)

It opened on a positive note and moved in a range and finally ended the day with a gain of 258.45 points. It got out of the corrective mode today, which is a good sign. The technical setup is good for the continuation of the up move, But one out of five important indicators is still showing slight weakness despite steady price movement, however if price action remains strong which is then indicator 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 one weak indicator one should be slightly alert and cautious in the long trades because it can correct. 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 45585.35---45570----45410.85---45342---45301---45121---44975---44958--44809.22---44787---44747—44709----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. Please note that break below 45585.35 & 45570 will push it into short correction mode again and thereafter break below each support point will weaken it further, sustain break below 45410.85 may trigger fall, sustained break below 44709 &44639.45 may trigger fresh fall and finally it may lose upside steam for a while and 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 45410.85 could be a risky bet for the day.

TRADING TIPS:--

1. Safe traders can try long trade on decline near 45410 with a stop loss of 44250 or if it holds 45585.35 & 45570 for some time with a stop loss of 45500. However, aggressive traders can try long trade on sharp decline at appropriate points or near or within the range of 44958---44750 with a stop loss of 44550.

2. It is in the long term uptrend therefore short trade in general could be a risky affair. But 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 45950---46000 with a stop loss of 46120. 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 favorable 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.