A TECHNICAL UPDATE ON CNX-BANK NIFTY—26.7.2023

 

CNX-BANK NIFTY

Open---46154.70---High—46156.10---Low---45622.85---Close—45845 on 25.7.2023.

Support:-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:-45925/45940/ 46268/46340/46369.50/47448/47575/47808/48229/48685/49040/49240/49525.          

 (Bold and underlined figures are most important)

It opened on a very strong positive note but could not move further and slipped down and hit a low of 45622.85 for the day and finally ended the day with a loss of 78.05 points. It is into short correction mode now. Please note that this correction may not last for more than next 2-3 trading sessions at the maximum and it may resume the up move again, but if it last beyond that then it could be disturbing and break below 45655.50 & 45410 will indicate significant weakness and can drag it down further, so be watchful.  The overall long term 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 as it is into correction mode now , therefore one should be slightly alert and cautious in the long trades at this point of time because how correction will culminate has to be seen because at times it can take ugly turn also. The long term bias is highly bullish as of now.

Moving  down further from here its good support points could be at 45799---45697----45655.50---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. It slipped into correction mode today and now break below each support point will weaken it further, but please note that  it closed above its pullback threshold point of 45799(figure can change) and if it sustains above it then the chances are that it can have pullback up move which could take it to 45908---45996---46084---46193---46220 please note that the rally can exhaust at any of these points or earlier also but if it moves above 46220 and sustain then it could retest its all-time high of 46369.50 or may go beyond it also, else it may keep drifting down. break below 45570 will be an alert point, sustain break below 45410.85 may trigger fresh fall, sustained break below 45393—45168 & 45070 may accelerate the fall, break below 44865 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.

Similarly moving up from here it may face resistance at 45940---45980---46268---46340---46364---46369.50---47448---47980 it may correct at any of these points and then may resume the up move again. Please note that if it closes above 45940 and sustains then it will get out of corrective mode and may try to pick up momentum again.     

IMPORTANT NOTE:-Long trade below 45410 could be a risky bet for the day.

TRADING TIPS:--

1. Long trade can be tried if it holds 45799 for some time with a stop loss of 45700 or can buy on decline near or within the range of 45622---45570 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 45168----45070 and not below it with a stop loss of 44920. 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 it is into short correction 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 46250---46300 with a stop loss of 46425 or sell if it moves below 45799 with a strict stop loss of 45960 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.