A TECHNICAL UPDATE ON CNX-BANK NIFTY—5.9.2023

 

CNX-BANK NIFTY

Open---44647.65---High—44656.05---Low---44310.95---Close—44578.30 on 4.9.2023.

Support:44547.80/44498.60/44459.25/44279.40/44254/44151.80/ 43950/43862/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962

Resistance: 44795/44949.60/45118.05/45238.80/45655.50/45782.75/46310.10/46369.50.

 (Bold and underlined figures are most important)

It opened with an up gap but could not go up further and moved in a range and ended the day near the high of the day with a gain of 142.20 points. It has come out of deep & long term corrective mode as it closed above its threshold point of 44539  but still into short & medium term correction mode. The short term technical setup has improved a bit, furthermore four out of five important technical indicators are positive on the daily chart and strongly pointing that the up move can extend further from here, but on the weekly chart few indicators are giving  weak signal and indicate that the up move may extend for few days but may not last longer and eventually head down, therefore it is suggested that irrespective of indicators weak signal on the weekly chart please give prime importance to price action because if price action weakens then only the indicators weakness will come into play which please note, so be cautious and watchful about price action. Kindly note that as long as it holds 44254 & 44151.80 on the closing basis chances of up move will always be alive but if it breaks it and sustain then the next strong support range would be between 43695---43345. Please note that for the steady up movement it has to moves above 44795---44950 &45118.05(figure may change) and sustain on the closing basis. The short and medium term bias is down as of now but the long term uptrend is still intact.

Moving up from here it may face resistance at 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. It may get into steady up movement if it moves above 44795---44950 & 45118.05 and sustain on the closing basis.

Moving  down  from here its good support points could be at 44547.80----44422---44279.40---44254---44151.80---43989---43706.15---43695---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 lessen the possibility of an up move, break below 43695 &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.

TRADING TIPS:--

1. Long trade can be tried if it moves above 44660 and maintain for some time with a stop loss of 44430 or can buy on sharp decline near or within the range of  44300---44250 with a stop loss of 44000. Please note that long trade could be a risky bet in correction mode but pullback move is also on so it 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 still into short and medium term 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 44950---45050 with a stop loss of 45160 or sell if it moves below 44151 with a stop loss of 44325.  

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.