A TECHNICAL UPDATE ON CNX-BANK NIFTY—6 .11.2023

 

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CNX-BANK NIFTY

Open---43318.30---High—43416.10---Low---43221---Close—43318.25 on 3.11.2023.

Support:43078.90/43038.25/  42986.45/42589.65/42582.20/42108/42105.40/41962/41829.60/41626/41569/41060/40819/39424.85/39300.

Resistance: 43345.95/43416.10/43446/43519.55/43600.35/43706.15/43830.75/43862/43950/44151.80/ 44182.50/44207.25/44254/44279.40/44390/44459.25/44498.60/44547.80/44539/44566.30/44795/44949.60/45118.05/45238.80/45655.50 45782.75/45816/45893.80/46310.40/46369.50/.          

 (Bold and underlined figures are most important)

It opened with an up gap and moved up further and thereafter moved in a short range during the day and finally ended the day with a gain of 301.05 points. It moved in a very short range today, therefore it seems that it is bracing for a big move on either side on 6.11.2023, furthermore the price action was positive today, therefore likely to move up, the range for the day is 43416---43221 and breakout on either side will decide the day’s move. The short term technical setup has improved a bit but overall it is still exhibiting weakness on the daily and weekly chart despite last two days rise. It is already into deep short & medium term correction mode for its earlier rise, long term uptrend is also threatened and break below 43221 & 43106.77(figure may change) will push it into short & deep short correction mode for its very recent rise. But the good point is that it is making higher top & bottom on the line & bar chart and most importantly it has moved above almost all its critical & important points of 42964---42986.45---43038.25---43106.77---43112---43221(figures may change) except for one at 43345.95 which is very important point and if it moves above it and sustains on the closing basis then the up move if definitely going to extend, similarly sustained break below the said range can trigger fall again. Please note that to have a smooth & steady up movement it has to move above 43600---43750--43900 & 44520figure may change) and sustain on the closing basis and to get into the strong up momentum track it has to close above 44711—44151.80---44180---45517(figure may change) and sustain on the closing basis. Please note that two out of five important technical indicators  on the daily chart has turned positive today raising some hope that up move can extend, but all the five indicators on the weekly chart are negative and most importantly weakness has trickled down to monthly chart also in few indicators , therefore all together it is still highly concerning and indicates that after possible extended up move it may witness deep fall in coming days/ weeks/months. Furthermore the price action has also not been consistently positive, but it has been positive for the last two days. Please note that for a smooth up movement steady positive price action is needed, else the up move can abruptly end. It is therefore suggested to keep an eye on the price action and see how it behaves in coming days. It is into deep short & medium term correction mode now and long term uptrend is also threatened as of now. Therefore if falls below the above mentioned range and sustains then further fall looks inevitable.

Kindly note that moving down from here it’s possible support points would be at 43221---43112---43106.77---43038.25---42986.45---42964--42879---42720---42589.65---42559.50---42520---42473---42401---42386---42279---42252---42100---41984---41907---41829.60---41576---40948----40444---40164---39370(figure may change) it may bounce back from any of these points, but break below the range of 43221---42964 may trigger fall again.

Moving up from here it may face resistance at 43345.95---43416---43734---44096---44151.80---44190---44237---44711---44741---45118---45363----45469---45517---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: -- The overall technical setup is still weak on daily and weekly chart, but in light of few positive sign, it may have an extended up move if it moves above 43345.95 and sustain on the closing basis and then holds the range of 43345.95---42964 levels, therefore long trade can be tried on decline if it holds this range, so it is buying on decline market now till it behaves otherwise. But please note that weekly indicators are still pointing towards big fall in coming weeks and it could head down to 41000 or much lower levels in coming weeks provided it moves below 42964 and sustains on the closing basis.  

TRADING TIPS:--

1. For safe traders long trade can be tried if it moves above 43416 and maintain for some time with a stop loss of 43200 and avoid buy on decline for the day. However, aggressive traders can also try long trade on decline near 43050 with a stop loss of 42830. It could be a risky trade.

2. It is already into deep short and medium term correction mode and long term uptrend is also threatened, but the meaningful pullback up move is also on , even then short trade can be attempted on reasonable rise for pullback gains but with extreme caution. Short trade can be tried on the rise near or within the range of 43530---43600 with a stop loss of 43700 or sell if it does not move above 43416 in first hour of trade even in intraday with a stop loss of 43520. It could be a risky trade

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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 favorable 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. 

Thanks 

Narendra Kumar Surana

Email—suranank@gmail.com

Mobile—8240951127/9831313654.