A TECHNICAL UPDATE ON CNX-BANK NIFTY—8.9.2023

 

CNX-BANK NIFTY

Open---44418.05---High—44915.55---Low---44341.20---Close—44878.35 on 7.9.2023.

Support: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: 44949.60/45118.05/45238.80/45655.50/45782.75/46310.10/46369.50.           

 (Bold and underlined figures are most important)

After two days down move it bounced back sharply today  and closed near the high of the day  with a robust gain of 469.25 points. It came out of deep corrective mode today but still into short and medium term corrective mode. But the short term technical setup has improved, 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 and if price action remains strong then the weekly indicators can turn positive also in coming days, which please note which please note and the price action was pretty strong today, so watch out. Kindly note that close below 44425 could be concerning , but 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 could be between 43600---43345. Please note that for the steady up movement it has to moves above 44950 &45118.05(figure may change) and sustain on the closing basis. The long term uptrend is still intact.

Moving up from here it may face resistance at 44422---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 44550---44795---44950 & 45118.05 and sustain on the closing basis.

Moving  down  from here its good support points could be at 44726---44685----44631.41---44547.80----44539---44279.40---44254---44151.80---43989---43830.75---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 corrective mode, but break below 44539 will push it into deep long term corrective mode, break below each support point will weaken it further, break below 44254 & 44151.80 will lessen the possibility of continuation of the up move, break below 43741(figure may change every day) will threaten the long term uptrend, break below the range of 43600---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 44950 and maintain for some time with a stop loss of 44780 or can buy on decline near 44410 with a stop loss of 44130. 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 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 45350---45440 with a stop loss of 45540.  

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.