A TECHNICAL UPDATE ON CNX-BANK NIFTY—18.10.2023

 

CNX-BANK NIFTY

Open---44589.80---High—44589.85---Low---44336.95---Close—44409.50 on 17.10.2023.

Support: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: 44459.25/44498.60/44547.80/44539/44566.30/44795/44949.60/45118.05/45238.80/45655.50 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 but could not move up further and finally ended the day with a gain of 183.60 points. It is into deep short & medium term correction mode for earlier rise and it went into short correction mode today for its very recent rice as it is below its threshold point of  44495(figure may change). It is still below some of its short & medium term moving averages on the daily chart and below some short term moving averages on the weekly chart also all together it is concerning, but the good point is that it closed above its meaningful pullback threshold point of 44390(figure may change)   and if hold this mark on the closing basis then the up move can extend

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. Please note that even if it breaks 44390 level but manages to hold the range of 44254---44179 &44151.80 on the closing basis 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 44694---44950---45816 & 45820(figures may change) and sustain on the closing basis. Please note that sustained close above 44694 may help it for a steady up move.  The short term technical setup still looks weak, but on the daily chart three out of five important indicators are positive now therefore giving good hope that it may continue the up move, but few indicators on the weekly 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, the price action was positive today which is a good sign. Please note that for a steady up movement continuous positive price action is needed, else it may resume the down move again. It is therefore suggested to keep an eye on the price action, so watch out. Its long term uptrend is intact as of now.

Kindly note that moving down from here the key support points could be 44390---44254---44179---44151.80---43600.35---43446---43345.90---43038.25---42986.45---42935(figure may change) sustained break below 44390---44254---44179 & 44151.80 will dampen the possibility of the up move to a great extent and may threaten the long term uptrend as well. Break below 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 & 42935 may end the possibility of a steady up move for a while and it may head for deep down move, which please note. 

Moving up from here it may face resistance at 44539---44658---44694---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.

IMPORTANT NOTE: -- technically it is on a weak footing in comparison with CNX-Nifty at this point of time, so it may underperform.

TRADING TIPS:--

1. Long trade can be tried near or within the range of 44254---44151.80 with a stop loss of 44000 or if it moves above 44473 and maintain for some time with a stop loss of 44330.

 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 above pullback threshold point, 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 44670---44720 with a stop loss of 44820 or sell below 44040 with a stop loss of 44300.

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.