A TECHNICAL UPDATE ON CNX-BANK NIFTY—18.9.2023

 

CNX-BANK NIFTY

Open---46122.15---High—46310.40---Low---46028.75---Close—46231.50 on 15.9.2023.

Support45893.80/45816/45782.75/45655.50/ 45238.80/45118.05/44949.60/44795/44547.80/44539/44498.60/44459.25/44279.40/44254/44207.25/44151.80/ 43950/43862/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962

Resistance: 46310.40/46369.50/46761/47063/47123/47284/47427/47755/48081/48198/48446/49139.     

 (Bold and underlined figures are most important)

It opened on a positive and steadily moved up and finally ended the day with a gain of 230.65 points. It is exhibiting good strength for the continuation of the up move. It is out of all corrective mode for its earlier gains, but if it closes below 45814 & 45671(figure may change) then it will slip into very short & deep corrective mode again for its recent rise, which please note. The technical setup is good and price action is also strong, furthermore all the important technical indicators are positive on the daily chart and pointing that the up move can continue further from here but with intermittent correction, but on the weekly& monthly chart few indicators are still giving weak signal which is concerning and it can dampen the up move and may get it into deep correction mode if price action weakens. It is therefore suggested to keep an eye on the price action and if it gives weak sign then be alert but as of now it is pretty strong, which please note. The long term trend is up.  

Moving up from here it may face resistance at 46310.40---46369.50---46761---47063---47123---47284---47427---47755(figure may change) Please note that it may correct at any of these points and may resume the up move again or rally may exhaust for a while. It is important to mention here that if it sustains above its critical point of 45816 on the closing basis then it could retest its all-time high of 46369.50(today it went very near to it) or may go beyond it also and scale new highs.

Kindly note that moving down from here the  key support points could be 45816----45814---45671----45511.35(figure may change) break below 45816 & 45782.75  could be an alert point and break below 45814 & 45671 will push it into short and deep corrective mode for its recent rise, break below 45511 may accelerate the fall but as long as it holds 45150(figure will change every day) on the closing basis up move is likely to continue, break below 44880(figure will change every day)  could be concerning and finally break below 44151.80 on the closing basis may dampen the possibility of continuation of the up move and it may slide down and then the next strong support range would be between 43899----43600----43446---43345. Please avoid long trade below 45511 for sure as of now.

TRADING TIPS:--

1. Safe traders can try long trade if it moves above 46311 and maintain for some time with a stop loss of 46140 or on decline near or within  the range of 45816---45782 with a stop loss of 45650.  But aggressive traders can also try long trade on sharp decline near 45200 with a stop loss of 45000. It is important to mention here that long trade below 45816 & 45782.75 could be a risky bet for the day.

2. It is into the long term uptrend therefore short trade in general could be a risky affair but as it is still into correction mode but pullback move is also on , therefore short trade can be attempted but with extreme 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 46480----46520  with a stop loss of 46650 or sell if it does not move above 46310.40 even intraday in first hour of trade near it with a short stop loss of 46410.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.