A TECHNICAL UPDATE ON CNX-BANK NIFTY—14.8.2023

 

CNX-BANK NIFTY

Open---44568.15---High—44571.25---Low---44120.90---Close—44199.10 on 11.8.2023.

Support:44151.80/44120.90/43706.15/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20

Resistance:44279.40/44459.25/44498.60/44547.80/45118.05/45238.80/45655.50/45782.75/46310.10/46369.50.

 (Bold and underlined figures are most important)

It ended the current week on a dismal note closing near the low of the week with day’s loss of 342.70 points. The short term technical setup is weak on the daily chart and it is already into deep and long term corrective mode and now most importantly the weakness has trickled down to the weekly chart also in some respect which is highly concerning, therefore it is likely to go down further in coming days. It’s crucial and key support is at 44151.80 which it did break intraday today but managed to closes above it and if it still holds it on the closing basis then it could stage a recovery, else it may slide further. Please note that it may possibly resume the up move again if it moves above 45118.05 & 45350(figure will change every day) and sustain on the closing basis, but even if it closes above 44652(figure may change) and sustain then there could be a hope of a pullback up move which may be kept in mind. The short term bias is down but the long term uptrend is still intact as of now.

Moving  down further from here its good support points could be at 44151.80---44120.90---43706.15---43495---43345----43038.25---42986.45(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 or  may keep sliding down also. It is already into long and deep corrective mode, break below 44151.80 &44120.90 will trigger fresh fall and it may lose upside steam, break below 43495(figure may change every day) will threaten the long term uptrend and finally sustained break below 43038.25 & 42986.45 may accelerate the fall.

Similarly moving up from here it may face resistance at 44547.80---44652---44737---44883---44980---45118.05---45350(figure may change) it may correct at any of these points and then may resume the up move again or rally can fizzle out also. Please note that 44652(figure may change) is its pullback threshold point and if it closes above it and sustain then there is a hope that it could give a relief up rally, else down move may continue. It may resume the steady up move again if it closes above 45118.05 & 45350(figure will change every day) and sustain.   

IMPORTANT NOTE:-Long trade below 44120 could be a risky bet for the day. Please note that as of now technical Indicators are pointing towards moderate to sharp fall in coming days/weeks and it can possibly hit the range of 44000---43600 or below on the downside. Since it is in correction mode, therefore it is sell on the rise market for now, so it is suggested to avoid long trade for the time being, but can be tried at critical support points for pullback gains with strict stop losses.

TRADING TIPS:--

1. For safe traders it is suggested to avoid long trade till correction completion sign emerges or if it closes above 45118.05. However, aggressive traders can try long trade if it holds 44151.80 with a stop loss of 44000 or on decline near 43500 but not below it with a stop loss of 43350. Please note that long trade could be a risky bet in correction mode.

2. It is still in the long term uptrend therefore short trade in general could be a risky affair but as it is into deep and long corrective mode now, therefore short trade should 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 44500---44575 with a stop loss of 44680 or sell if it moves below 44120 with a stop loss of 44340 ,It could be a risky trade  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 favorable 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.