A TECHNICAL UPDATE ON CNX-BANK NIFTY—27.7.2023

 

CNX-BANK NIFTY

Open---45935.15---High—46096.60---Low---45804.70---Close—46062.35 on 26.7.2023.

Support:-45940/45925/45845/5658/45655.50/45525/45416/45210/45179/44958/44939/44812/44787.10/ 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 on a positive note and went up further and finally ended the day near the high of the day with a gain of 217.35 points. It has come out of the correction mode today and all the five important technical indicators are positive now, which is an extremely positive sign. Furthermore the overall long term technical setup is very strong for the continuation of the up move but volatility is a slight concern. However it is in the strong long term uptrend and it is buying on decline market in general as of now.

Moving up from here it may face resistance at 46187---46220---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 46220 and sustains then it may retest its all-time high of 46369.50 or may go beyond it also.     

Moving  down further from here its good support points could be at 45940---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. Kindly note that break below 45940 will push it back in the correction mode and thereafter break below each support point will weaken it further,  but please note that as long as it holds 45799(figure may change) which is its pullback threshold point  then the chance of the up move will be alive, else it may trigger fall, break below 45570 will be an alert point, sustained break below 45423—45245 & 45170 may accelerate the fall, break below 44956 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.

IMPORTANT NOTE:-Long trade below 45799 could be a risky bet for the day.

TRADING TIPS:--

1. Long trade can be tried if it moves above 46135 and maintain for some time with a stop loss of 46050 or can buy on decline near 45845 but not below it with a stop loss of 45750. However, aggressive traders can try long trade on sharp decline at appropriate points or near or within the range of 45423----45265 and not below it with a stop loss of 45100. 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. 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 46320---46360 with a stop loss of 46460 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.