A TECHNICAL UPDATE ON CNX-BANK NIFTY—29.8.2023

 

CNX-BANK NIFTY

Open---44253.65---High—44610.10---Low---44201.45---Close—44494.65 on 28.8.2023.

Support: 44459.25/44279.40/44151.80/43950/43862/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962

Resistance: 44498.60/44547.80/44949.60/45118.05/45238.80/45655.50/45782.75/46310.10/46369.50.   

 (Bold and underlined figures are most important)

It opened on a positive note and moved up further and finally ended the day with a gain of 263.20 points. It is already into deep and long term corrective mode for earlier gain, it also slipped into short correction for its recent rise as it is below its threshold point of 44631.41(figure may change). The short term technical setup is weak but the good point is that it has closed well above its pullback threshold point of 44254(figure may change), furthermore major technical indicators except for one have turned positive on the daily chart, therefore chances of an up rally seems pretty bright  if it holds it critical & important points of 44245 & 44151 on the closing basis, but break below 44151.80 on the closing basis will trigger fresh fall and then the strong support will be in the range of 43621---43345 only. Please note that for the steady up movement it has to moves above 44550---44795---44950 &45118.05(figure may change) and sustain on the closing basis, else it may move in the range before either side breakout happens. The short term bias is down as of now but the long term uptrend is still intact.

Moving  down further from here its good support points could be at 44467---44353---44279.40---44254---44151.80----43959---43706.15---43606---43600.35---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 44254 &44151.80 will be an alert point to exit long trade, break below 43621 &43600(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.

Moving up from here it may face resistance at 44581---44547.80---44581----44631.41---44658---44722---44757---44949.90---44985---45118.05----45311---45716---45816(figure may change) Please note that  it can correct at any of these points and  then may  resume the up move again or up move can fizzle out also but if it moves above 44631.41 and sustain on the closing basis then it will get out of recent rise corrective mode and if it moves above 44950 & 45118.05  and sustain on the closing basis then it may have steady up movement.

IMPORTANT NOTE: It is still into deep and long term correction mode, but today it closed above its pullback threshold point of 44254 so up rally can move further if it holds 44254, therefore long trade can be tried for pullback gains but it is sell on the rise market in general as of now, therefore long trade should be avoided in general but can be tried by aggressive traders at critical support points for pullback gains. Please note that long trade below 44231 could be a risky bet for the day. The technical indicators as of now are pointing that it could break 43000 levels in coming days/week if it breaks its key support points as mentioned above. So be watchful.

TRADING TIPS:--

1. Long trade can be tried if it moves 44632 and maintain for some time with a stop loss of 44450 or can buy on decline near 44230 with a stop loss of 41000. Please note that long trade could be a risky bet in correction mode, but pullback move is on so long trade  can be tried at critical support points for the pullback gains 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, 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 44900---44950 with a stop loss of 45140 or sell if it moves below 44151 with a stop loss of 44290.  

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.