A TECHNICAL UPDATE ON CNX-BANK NIFTY—6.7.2023

 

CNX-BANK NIFTY

Open---45169.70---High—45418.90---Low---45073.40---Close---45151.80 on 5.7.2023.

Support:44939/ 4481244592/44508.40/44498.60/44459.25/44360/44266/44220.10/44151.80/44095.25/43874.05/43706.15/43614.65/43598.20/43397.50/43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.

Resistance:- 45179/45210/45416/45525/45658/46268/46364/47575.                      

 (Bold and underlined figures are most important)

After 6 days of strait rise it took a breather and corrected today and closed with a loss of 149.65 points, it showed some fatigue yesterday and corrected today. Please note that it gained almost 1680 points on the closing basis in the last six days, so today’s correction was not meaningful had it given 1/3 correction of the recent rise on the closing basis that would have been extremely good for the up move, so the chance of further correction from here is still there. But it is in the strong uptrend so it may not correct further and may resume the up move from here itself. So watch out.

Moving up from here it may face resistance at 45179---45210---45416----45525---45658---46268---46364 it may correct at any of these points and then may resume the up move again. Similarly going down its support points could be at 45151----45110----44930----44784----44747----44492----44151.80(figures may change), it may bounce back from any of these points and resume the up move, but break below 45151 will push it into very short correction for its recent rise and thereafter break below each points may deepen the correction, break below 44747 will be an alert point and break below 44498.60 & will be an warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below 44151.80 and sustain on the closing basis. 

It is in the strong long term uptrend and its buy on decline market in general, light of vertical rise it is suggested to avoid long trade below 45151 for the day.

TRADING TIPS:--

1. Long trade can be tried if it holds 45151 for some time with a stop loss of 44920 or if it moves above 45325 and maintain for some time with a stop loss of 45140 (it could be a risky trade for the day). However, aggressive traders can also try long trade on sharp decline near or within the range of 44957—44750 with a stop loss of 44600.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it 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 45550---45600 with a stop loss of 44680 or sell if it moves below 45065 with a stop loss of 45170. 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 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.