A TECHNICAL UPDATE ON CNX-BANK NIFTY—24.7.2023

 

CNX-BANK NIFTY

Open---46063.95---High—46369.50---Low---45925.90---Close—46075.20 on 21.7.2023.

Support:-45940/45925/45658/45655.50/45525/45416/45210/45179/44958/44939/44812/44787.10/ 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: 46268/46340/46369.50/47448/47575/47808/48229/48685/49040/49240/49525.         

 (Bold and underlined figures are most important)

It opened with sharp down move and went down further and later staged a sharp recovery and hit a new all-time high of 46369.50, but could not sustain at the upper level and slipped down again and ended the day with a loss of 111.70 points. It had a down day today but it is not in correction mode, so it may resume the up move next day also. The overall technical setup is very strong for the continuation of the up move but volatility is a slight concern. It is in the strong long term uptrend and it is buying on decline market in general as of now but sustained break below 45925 could be concerning and can drag it down, which may please be noted. The bias is hugely bullish as of now.

Moving up from here it may face resistance at 46268---46340---46364---46369.50---47448 it may correct at any of these points and then may resume the up move again. Please note that if it moves above 46369.50 and sustains on the closing basis then it may carry-on the strong up momentum.

Similarly moving  down further from here its good support points could be at 45940---45697-45656----45570----45475---45410.85---45327---45281.30---45038---44958---44825---44787---44747—44695---44539----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 sustained break below 45940 & 45925 will push it into short correction mode and thereafter break below each support point will weaken it further, break below 45570 will be an alert point, sustain break below 45410.85 may trigger fresh fall, sustained break below 44942 may accelerate the fall, break below 44667 could be highly concerning, break below 44539 will get it into deep and long corrective mode and finally it may lose upside steam for a while if it fall below 44151.80 and sustain on the closing basis.  

TRADING TIPS:--

1. Safe traders can try long trader if it holds 45940 & 45925 on decline for some time with a stop loss of 45820 or if it moves above 46190 and maintain for some time with a stop loss of 46050. However, aggressive traders can try long trade on sharp decline at appropriate points or near or within the range of 45500----45410 and not below it with a stop loss of 45240. It could be a risky trade but worth trying.

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 46360---46460 with a stop loss of 46550 or sell below 45925 with a strict stop loss of 46100 It could be a highly 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.