A TECHNICAL UPDATE ON CNX-BANK NIFTY—2.8.2023

 

CNX-BANK NIFTY

Open---45740---High—45782.75---Low---45471.05---Close—45592.50 on 1.8.2023.

Support:-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:- 45655.50/45658/45845/45905.85/45940/46268/46340/46369.50/47448/47575/47808/48229/48685/49040/49240/49525.           

 (Bold and underlined figures are most important)

It opened on a positive note and then drifted down and finally ended the day with a loss of 58.60 points. It is into correction mode, it is below some of its short term moving averages, it still has lower top & bottom on the line & bar chart and two out of five important technical indicators are negative which is concerning and pointing that it can go down from here in coming days. But the good point is that it is above its pullback threshold point of 45506(figure may change) today and if it holds this mark on the closing basis then the chance of up move will be alive. Therefore despite weak technical indicators it still has a ray of hope to move up provided it holds 45506 and in worst case 45468 & 45430 on the closing basis; else it may start to drift down again. The short term chart setup and technical indicators are slightly 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, negative technical indicators and correction mode, it is suggested to be alert and cautious in the, long trade on decline or defer it till visible sign of correction completion emerges. So watch out.

 Moving up from here it may face resistance at 45655.50---45671---45697----45760---45804----45940---46103---46143---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 or rally can fizzle out also. It will get out of corrective mode if it closes above 45940 and sustains and then it is expected to pick up good up momentum again and finally if it moves above 46143 and sustain on the closing basis then it could retest its all-time high of 46369.50 or may go beyond it also.  

Similarly moving  down further from here its good support points could be at 45506---45407---45327---45331---45238---45120---44958---44912---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 is into correction mode now and break below each support point will weaken it further, but if holds 45506 then the chance of up move will be on, sustained break below 45468 & 45430 may trigger fresh fall, break below 45238  may accelerate the fall, there is a good chance that it could bounce back from 44912 but break below it could be a bad sign, 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 45430 could be a risky bet for the day.

TRADING TIPS:--

1. For safe traders long trade can be tried on decline near or within the range of 45506--45470 but not below it with a stop loss of 45370 or if it move above 45740 and maintain for some time with a stop loss of 45570. However, aggressive traders can also try long trade on decline near  45238 but not below it with a stop loss of 45080. 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, 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 45880---45920 with a stop loss of 46050 or sell if it moves below 45430 with a stop loss of 45600.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.