A TECHNICAL UPDATE ON CNX-BANK NIFTY—12.10.2023

 

CNX-BANK NIFTY

Open---44554.90---High—44710.55---Low---44411.40---Close—44516.90 on 11.10.2023.

Support:44498.60/44459.25/44279.40/44254/44207.25/44182.50/44151.80/43950/  43862/43830.75/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962

Resistance:44539/44547.80/44566.30/44795/44949.60/45118.05/45238.80/45655.50 45782.75/45816/45893.80/46310.40/46369.50/46761/47063/47123/47284/47427/47755/48081/48198/48446/49139.           

 (Bold and underlined figures are most important)

It opened with an up gap and went up further but retreated from the upper level but finally ended the day with a gain of 156.75 points.  It is still into deep short & medium term correction mode now for recent and earlier rise. It is still below some of its short & medium term moving averages on the daily and weekly chart despite up move today, which is concerning, but it has crossed its recent top  on the line & bar chart, furthermore it has closed above its  meaningful pullback threshold point of  44390(figure may change) and if it sustains above it on the closing basis then the rally can extend, but even if it breaks this mark but holds 44254 &44151.80 on the closing basis then the chances of up move will still be alive, else it may resume down move again. But to get into strong up momentum track it has to close above 44584---44850---44950---45816 & 45820(figures may change) and sustain on the closing basis. Please note that sustained close above 44850 & 44950 may help it for a steady up move.  The short term technical setup has improved a bit, furthermore on the daily chart one out of five important indicators is positive now therefore giving some ray of hope that up move may extend further, but few indicators on the weekly and monthly chart are also showing weakness as of now. Please note that weak indicators with weak price action are a deadly combination and it can pull it down and the price action has been weak since 18.9.2023, but the price action for the last two days is pretty good, which is a positive sign. It is therefore suggested to keep an eye on the price action and if the positive price action continues for the next 1-2 days in a row then it may have steady up move; else it may correct again, so watch out price action. It is into deep short and medium term correction now but the long term trend is still up.  

Moving up from here it may face resistance at 44390---44565---44658---44757---44985---45054---45118---45311---45350---45671---45725---45782.75---45816---45885---46310.40---46369.50(some figure may change). Please note that it may correct at any of these points and then may resume the up move again or rally may exhaust also.

Kindly note that moving down from here the key support points could be 44390---44254---44151.80---44133---43600.35---43446---43345.90---43038.25---42986.45---42881(figure may change) sustained break below 44390---44254---44151.80 & 44133 may dampen the possibility of an up move, may threaten the long term up trend and fall may accelerate, break  43600.35 will be an alert point for further fall, sustained break below 43345.90 on the closing basis  will trigger fresh fall and it could be trend threatening also and finally sustained break below 43038.25---42986.45 & 42881 may end the possibility of a steady up move for a while, which please note.  

TRADING TIPS:--

1. Long trade can be tried if it moves above 44567 and maintain for some time with a stop loss of 44420 or on decline near or within the range of 44360---44152 with a stop loss of 44000.

 2. It is into the long term uptrend therefore short trade in general could be a risky affair, but it is into deep short and medium correction mode now, but pullback mode is also on today, even then short trade can be attempted but with extreme caution and care 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 44800---44850 with a stop loss of 44950.

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.