A TECHNICAL UPDATE ON CNX-BANK NIFTY—5.10.2023

 

CNX-BANK NIFTY

Open---44108.15---High—44161.35---Low---43857.50---Close—43964.05 on 4.10.2023.

Support:- 43950/43862/43830.75/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962

Resistance:44151.80/ 44182.50/44207.25/44254/44279.40/44459.25/44498.60/44539/44547.80/44795/44949.60/45118.05/45238.80/45655.50/ 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 is exhibiting tremendous weakness in price action, it opened with a down gap and went down further and finally ended the day with a loss of 435 points.  It is into deep short  & medium term correction mode now for recent and earlier gains as it is decisively below its threshold point of 44539, which is a weak sign and most importantly now it is posing a threat to its long term uptrend. It is below some of its short & medium term moving averages on the daily and below some short term moving averages on the weekly chart also; all together it is a very weak sign and indicates that further fall may be ahead with short relief rallies. Please note that to get into meaningful pullback mode it has to close above 44437(figure may change) and sustain on the closing basis then there is a hope that the up move may extend but it can have very short pullback up move or relief rally also if it moves above 44151.80&44254(figure may change) and sustain on the closing basis, else down move may continue. But to get into strong up momentum track it has to close above 45060---45816 & 45820(figures may change) and sustain on the closing basis. The short term technical setup has weakened, furthermore on the daily chart all the five important indicators are negative now therefore down move is likely to continue, 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 sharply and the price action has been weak since 18.9.2023 and it was terribly weak today. It is therefore suggested to keep an eye on the price action and look for higher highs & lows for at least 2-3 days in a row then the trend may reverse, else it can continue the down move, so watch out price action. It is into deep short and medium term correction now but the long term trend is still up.  

Kindly note that moving down from here the key support points could be 43600.35---43446---43345.90---43038.25---42986.45---42868(figure may change) break below 43600.35 will be an alert point for further fall, sustained break below 43345.90 on the closing basis may will trigger fresh fall and it may witness an accelerated down move and most importantly it could be trend threatening also and finally sustained break below 43038.25---42986.45 & 42868 may end the possibility of a steady up move, which please note.  

Moving up from here it may face resistance at 44090---44151.80---44254---44437---44539---44577---44658---44756---44795---45084---45118---45311---45373---45671---45725---45782.75---45816---45820---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: -- It is into short & medium term correction mode now, therefore it is sell on the rise market now till it closes above 45816 and sustain, therefore long trade could be risky thing till correction is on, but long trade can be tried intraday at critical support points for pullback gains only. Long trade below 43850 could be a risky bet for the day.

TRADING TIPS:--

1. Safe traders should avoid long trade till correction completion sign emerges or it closes above 44437 at least. But aggressive traders can try long trade on decline near or within the range of 43600---43345.90 with a stop loss of 43100.

 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, therefore 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 44465---44525 with a stop loss of 44600 or sell if it moves below 43850 with a stop loss of 44080.

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.