A TECHNICAL UPDATE ON CNX-BANK NIFTY—28.7.2023

 

CNX-BANK NIFTY

Open---46285.85---High—46310.10---Low---45570.65---Close—45679.30 on 27.7.2023.

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:- 45845/45940/46268/46340/46369.50/47448/47575/47808/48229/48685/49040/49240/49525.          

 (Bold and underlined figures are most important)

It opened with an up gap and thereafter slightly went up further but could not sustain and steadily moved down and closed below the low of the previous day with a loss of 383.05 points. Please note that it has given key reversal today, it slipped into correction mode again, it has fallen below some of its short term moving averages also, it made lower top & bottom on the line & bar chart after a long time and one out of five important technical indicators has turned negative today, therefore all together it is very concerning and pointing that it can go down sharply from here in coming days.  It is important to mention here that if it fails to stage a sharp recovery in next 4-5 trading sessions and closes above some of its critical points as mentioned below and sustain above it for the continuation of the up move, else the correction will deepen further. The short term chart setup and parameters are weak now but it is still in the strong long term uptrend and it is buying on decline market in general as of now. But in view of volatility, key reversal, some negative technical indicators and correction mode it is suggested to defer buying on decline for some time till visible sign of correction completion emerges because correction can get ugly also at times, so watch out. 

Moving  down further from here its good support points could be at 45655.50---45656----45570----45475---45407---45327---45316---45220---45070.80---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 again today and now break below each support point will weaken it further, 45570 will be an alert point, sustained break below 45407—45316 & 45225 may accelerate the fall, break below 45040 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.

Moving up from here it may face resistance at 45697----45760--- 45940---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 45760(figure may change) is its pullback threshold point and if it closes above it and sustains then chances are that it could possibly move up further to 45876—45970---46064---46181---46210, this rally can fizzle out at any of these points or earlier, but if it closes above 46210 and sustains then it could possibly retest its all-time high of 46369.50 or may go beyond it also.  It will get out of corrective mode if it closes above 45940 and sustains and then it may pick up momentum again.   

IMPORTANT NOTE:-Long trade below 45570 could be a risky bet for the day.

TRADING TIPS:--

1. For safe trader’s it is suggested to avoid long trade till it closes above 46070 or correction completion sign emerges. However, aggressive traders can also try long trade if it moves above 45760 and maintain for some time with a stop loss of 45600 or can buy on decline near or within the range of 45407—45316 & 45225 but not below it with a stop loss of 45000. It could be a risky trade but worth trying.

 2. It is in the strong uptrend therefore short trade in general could be a risky affair but as it is into correction mode and other parameters are also weak, therefore short trade can 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 46150---46250 with a stop loss of 46380 or sell if it moves below 45570 with a stop loss of 45770 .It could be a risky trade mind you but worth trying.  

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.