A TECHNICAL UPDATE ON CNX-BANK NIFTY—25.8.2023

 

CNX-BANK NIFTY

Open---44704.20---High—44949.90---Low---44433.75---Close—44496.20 on 24.8.2023.

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 with an up gap and went up further but could not sustain at the upper level and later in the day plunged down sharply and finally ended the day near the low of the day but with a meagre gain of 17.15 points. It was already into long and deep corrective mode but today  as it closed below its recent rise correction threshold point of 44631.41, so it in now in very short correction within the deep correction mode. The short term technical chart setup is weak but despite today’s volatility and weak price movement some important technical indicators on the daily chart has given positive signal today and some are pointing that they may turn positive in coming days. Furthermore it is well above its pullback threshold point of 44254 and crucial point of 44151.80, therefore it seems that till it holds these points on the closing basis chances of going down further looks bleak and chances of moving up from here looks bright despite all odds. It is important to mention here that even if it break below 44254 & 44151.80 the final strong support range is 43593---43345(figure may change) and break below this range only will trigger real fall. Please note that for the steady up movement it has to moves above 44720 & 45118.05 (figure may change) and sustain on the closing basis. The short term bias is down as of now but the long term uptrend is still intact.

Moving up from here it may face resistance at 44538---44547.80---44631.41---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 as it happened today 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 43593(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  43970. 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---45000 with a stop loss of 45130 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 44280. It could be a risky trade.

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.