A TECHNICAL UPDATE ON CNX-BANK NIFTY—20.9.2023

 

CNX-BANK NIFTY

Open---46100.95---High—46252.95---Low---45906.90---Close—45979.85 on 18.9.2023.

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 negative note and had both side movement but eventually ended the near the low of the day with a loss of 251.65 points. It corrected today, however the technical setup is still good for the continuation of the up move, but if correction last for few days which seems possible and if it closes below 45511 then it may halt the ongoing up move for a while and may slide down further. Furthermore it is important to mention here that if it closes below 45814 & 45671 (figure may change) then it will slip into short correction mode for its recent rise, which please note. The technical setup is good, 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  and the price action was weak today as it made lower high and lower low and closed below the previous day’s low which is concerning. Therefore it is suggested to watch out next 1-2 trading session for clarity in this regard. 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 will be a weak sign for the ongoing up move and may accelerate the fall but as long as it holds 45300(figure will change every day) on the closing basis the hope of  continuation of up move will be alive , break below 44970(figure will change every day)  could be very 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 43929----43600----43446---43345.

IMPORTANT NOTE: -- It is suggested to try fresh long trade if it moves above 46369.50 and sustain on the closing basis or on decline near or within the range 45816---45782 & then 45671---45511, long trade below 45782 could be a risky bet for the day ,which please note.

TRADING TIPS:--

1. Safe traders can try long trade 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 decline near or within the range of 45671---45511 with a stop loss of 45300.

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 46290----46370 with a stop loss of 46450.

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.