A TECHNICAL UPDATE ON CNX-BANK NIFTY—1.9.2023

 

CNX-BANK NIFTY

Open---44265.85---High—44399.65---Low---43895.05---Close—43989.15 on 31.8.2023.

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

Resistance:44151.80/ 44279.40/44459.25/44498.60/44547.80/44949.60/45118.05/45238.80/45655.50/45782.75/46310.10/46369.50.   

 (Bold and underlined figures are most important)

It opened on a positive note and moved higher but could not sustain and slipped down and finally ended the day with a loss of 243.45 points. It has decisively closed below its critical point of 44151.80 today which is very weak sign. It is already into deep and long term corrective mode for earlier gain, it is also into short correction mode for its recent rise as it is well below its threshold point of 44631.41(figure may change), it is also below its pullback threshold point of 44254(figure may change) today. The short term technical setup is weak and it gave reversal yesterday and price action is terribly weak; therefore it is likely to go down further in coming days. But the silver lining is that  four out of five important technical indicators are still positive, but if price action does not improve and it does not moves above its critical points then the down slide will continue and it may find strong support in the range of 43666----43600---43345 only, it may bounce back from this range. Please note that for the steady up movement it has to moves above 44450---44780---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 and medium 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 43959---43706.15---43653---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 43666 &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 44151.80----44254---44279.40---44422---44547.80----44631.41---44658---44701---44739---44780---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 44151.80 and sustain then it will gain some strength, if it moves above 44254 and sustain on the closing basis then the rally can extend further, if it moves above 44631.41 and sustain on the closing basis then it will get out of recent rise corrective mode and finally if it moves above 44450---44780---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, so it is sell on the rise market 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 44151 & 43870 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. Safe traders should avoid long trade till correction completion signs are visible or it closes above 44780 or at least above 44450 and sustain. However, aggressive traders can try long trade on decline near or within the range of 43666----43345 but not below it with a stop loss of 43180. Please note that long trade could be a risky bet in correction mode but 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 44450---44525 with a stop loss of 44650 or sell if it moves below 43860 with a stop loss of 44170.  

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.