A TECHNICAL UPDATE ON CNX-BANK NIFTY—10.7.2023

 

CNX-BANK NIFTY

Open---45118.05---High—45227.25---Low---44844.80---Close---44925 on 7.7.2023.

Support: 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: -44939/45179/45210/45416/45525/45655.50/45658/46268/46364/47575.                   

 (Bold and underlined figures are most important)

As envisaged it had a down move today and it slipped into short correction mode for its recent rise as it closed below its threshold point of 45151 and it may correct further from here but this correction should not last for more than 2-3 trading sessions and then it may bounce back and resume the up move again as it is in the strong long term uptrend as of now. But please note that if correction last for more than 2-3. Days then that could be slightly concerning.

Moving further down from here its good support points could be at 44844---44784---44747---44550---44492---44260----44151.80---43994(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 is into short correction now, break below the range of 44844---44787---44747 will be an alert sign, break below 44550 & 44492 will be a warning signal and sign of weakness and finally it may lose upside steam for a while if it moves below the range of 44250---44151.80---43994 and sustain on the closing basis. 

Similarly moving up from here it may face resistance at 44930---45036---45110----45151----45345---45416----45943---45525---45590----45655.50---45658----46268---46364 it may correct at any of these points and then may resume the up move again. Please note that it will get out of corrective mode if it moves above 45151 and sustain on the closing basis. However if it closes above 45036(figure may change) and sustain then there is hope that it can stage a pullback up move, close above 45345 will strengthen the up move and if it closes above 45493 and sustain then it could retest it all-time high of 45655.50 or may go beyond it also.  

Kindly note that it is in the strong long term uptrend and its buy on decline market in general, but it is in correction now, therefore buying can be considered on decline at appropriate strong support levels, although it is in a very strong uptrend but how correction will culminate is not know because it is possible that correction may take an ugly turn also, therefore watch out carefully and  structure your trade  accordingly with the help of above mentioned figures and range with strict stop losses.

TRADING TIPS:--

1. Safe traders can try long trade on decline if it holds the range of 44844—44787 with a stop loss of 44550. However, aggressive traders can also try long trade on sharp decline at appropriate points or near or within the range of 44250—44151 with a stop loss of 43950 or if it moves above 45050 and maintain for some time with a stop loss of 44830, but please note that it could be a highly risky trade for the day. LONG TRADE BELOW 44844 COULD BE A RISKY TRADE FOR THE WEEK STARTING FROM 10.7.2023.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but it has slipped into correction, 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 45190---45220 with a stop loss of 45330 or sell if it moves below 44844 with a stop loss of 44970. 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.