A TECHNICAL UPDATE ON CNX-BANK NIFTY—24.8.2023

 

CNX-BANK NIFTY

Open---44064.50---High—44521.65---Low---43952.05---Close—44479.05 on 23.8.2023.

Support: 44459.25/44279.40/44151.80/43950/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962

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

 (Bold and underlined figures are most important)

It opened on a positive note and then steadily moved up and finally ended the day with a robust gain of 485.80 points. Please note that despite the robust up move today it is still into the long term and deep corrective mode. The short term technical chart setup and technical indicators are very weak on the daily chart and the weakness has trickled down on the weekly chart also in some respect which is highly concerning, therefore it is likely to go down again in coming days. But the good point is that today it decisively closed above its crucial and most important  point of 44151.80 to keep the hope alive for the continuation of the up move, furthermore it also closed well above its pullback threshold point of 44254(figure may change) and other key point of 44304(figure may change) and if it hold these points on the closing basis then the up move can extend, else it may start to move down again and moving down it will have very strong support at 44151.80 and then in the range of  43574---43345 and it may bounce back from the crucial point or  from the mentioned range but break below 44151.80 will be an alert point and break below the range of 43574---43345 will trigger fresh fall.  Please note that for the steady up movement it has to moves above 44760 & 45118.05 (figure may change) and sustain on the closing basis. The short term bias is down but the long term uptrend is still intact as of now.

Moving up from here it may face resistance at 44538---44547.80---44658---44760---44815---44985---45118.05----45311---45716---45816(figure may change) Please note that it is in the pullback mode but pullback rallies are treacherous in nature and can end abruptly also, therefore it can correct at any of these points and may resume the up move again or rally can fizzle out also for good, so it is suggested to be alert and cautious in the long trade at this point of time.

Moving  down further from here its good support points could be at 44279.40---44151.80----43959---43706.15---43600.35----43574---43519.55---43390---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 each support point will weaken it further, break below 44151.80 will be an alert point to exit long trade, break below 43560(figure may change every day) will threaten the long term uptrend, break below 43345 may trigger fresh fall and finally sustained break below 43038.25 & 42986.45 may accelerate the fall.

TRADING TIPS:--

1. Long trade can be tried if it moves above 44550 and maintain for some time with a stop loss of 44200 or can buy on decline near or within the range of 44254—44155 but not below it with a stop loss of  43940. Please note that long trade could be a risky bet in correction mode but pullback move is also on therefore long trade can be tried for pullback gains but with extreme alert and caution.

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 and at the same time it is above its pullback threshold point also, so short trade can be attempted but with caution   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 44900---45050 with a stop loss of 45150 or sell near 44548 if it does not move above it in the first one hour of trade even intraday with a stop loss of 45650 or sell if it moves below 44151 with a stop loss of 44310.

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.