A TECHNICAL UPDATE ON CNX-BANK NIFTY—3.8.2023

 

CNX-BANK NIFTY

Open---45234.65---High—45404.90---Low---44720.90---Close—44995.70 on 3.8.2023.

Support:-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:45179/45210/45416/45525/ - 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 with a down gap and recovered for a while and then steadily went down and finally ended the day with a huge loss of 596.80 points. It was already into correction mode and it has intensified today, it decisively fell below all its short term and below some medium term moving averages on the daily chart, it is still making lower top & bottom on the line & bar chart, it has decisively broken triangle channel & rising trend line and most importantly all the five important technical indicators  has turned negative today, therefore all together it is highly concerning and pointing that it can further go down from here in coming days. The short term chart setup and technical indicators are very weak now but it is still in the long term uptrend and it is buying on decline market in general but in light of deep correction it is now sell on the rise market for the time being. Furthermore in view of volatility, negative technical indicators and deepening correction it is suggested to be extremely alert and cautious in the, long trade on decline but it would be better to avoid long trade till visible sign of correction completion emerges because sometimes correction gets ugly also as it happened today. So watch out for a positive signal to initiate long trade.

Moving  down further from here its good support points could be at 44912---44720---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 and it deepened today  and break below each support point will weaken it further,  break below 44539 will get it into deep and long corrective mode and fall may accelerate and finally it may lose upside steam  if it fall below 44151.80 and sustain on the closing basis.

Similarly moving up from here it may face resistance at 45038---45110---45238.80---45327---45351---45550---45655.50---45697----45750---45940---45980---46040---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. Please note that 45110(figure may change) is its pullback threshold point and if it closes above it and sustain then it could give a up rally, else down move may continue with in between relief rallies. 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.    

IMPORTANT NOTE:-Long trade below 44912 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 and it can possibly hit the range of 44000---43650 on the downside. It is suggested to avoid long trade for now.

TRADING TIPS:--

1. For safe traders it is suggested to avoid long trade till correction completion sign emerges or if it closes above 45655. However, aggressive traders can try long trade on decline near 44550 but not below it with a stop loss of 44400 or if it moves above 45239 and maintain for some time with a stop loss of 45100. Please note that long trade could be a risky bet for the day as correction has deepened.

2. It is in the strong uptrend therefore short trade in general could be a risky affair but as it is into correction mode now, 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 45400---45500 with a stop loss of 45650 or sell if it does not move above 45239 in first hour of trade with a stop loss of 45440 or if it moves below 44820 with a stop loss of 44950 .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.