A TECHNICAL UPDATE ON CNX-BANK NIFTY—21.11.2023

 

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CNX-BANK NIFTY

Open---43591.50---High—43724---Low---43450.05---Close—43584.95 on 20.11.2023.

Support:43345.95/43078.90/43038.25/ 42986.45/42582.20/42105.40/41962/41840.15/41829.60/41729/41569/40819.15/39600.25/39419.50..

Resistance: 43600.35/43796.75/43830.75/44151.80/44279.40/44498.60/44547.80/44710.55/44779.65/44949.90/45118.05/45238.80/45655.50/ 45782.75/45816/45893.80/45905.85/46310.40/46369.50/.    

 (Bold and underlined figures are most important)

It opened on a flat note and had both side moves during the day and finally ended the day on a flat note with a meager gain of 1 point. It is still into deep short & medium term correction mode for its earlier rise and slipped into deep short correction mode for its recent rise as it  well below its threshold point of 43874.48(figure may change) and the long term uptrend is also slightly threatened, it slipped below its short term moving averages on the daily & weekly chart, below its medium term averages on the daily chart and some below weekly chart also and most importantly it is below some of its long term moving averages, it has broken recent bottom on the bar and line chart, therefore all together it is looks highly concerning and if does not stage a sharp bounce back in next 1-2 trading session then the downslide may continue. But please that that the only good point is that it is well above its most critical and trend deciding range of 43345.95---43112----43058---43038.25----42986.45(figures may change) and as long as it holds this range chances of up move will be alive. But for the smooth and steady up move it has to move above 43900---44151.80--- 44231(figures may change) and sustain on the closing basis. Please note that to get into the strong up momentum track it has to close above 44421---44710.55----44750---45363---45517(figure may change) and sustain on the closing basis.  Please note that four out of  five important technical indicators on the daily chart are still positive now, therefore the on-going up move can still extend further provided it holds the key support range as mentioned above, four out of five indicators on the weekly chart are negative and most importantly weakness has trickled down to monthly chart also in few indicators , therefore on the weekly & monthly chart it is still highly concerning and indicates that after the extended up move( which seems have ended) it may still witness deep fall in coming days/ weeks/months because it is the up move within the downtrend as of now. Furthermore the price action has also not been consistently positive in the recent past and  it  is still weak, so watch out. 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. The short term technical setup has weakened, so be watchful and alert. 

Moving up from here it may face resistance at 43865---43734----44151.80---44229---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.  

Kindly note that moving down from here it’s possible support points would be at 43504.95---43345.95---43284---43112---43038.25---42986.45---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, It is already into deep correction mode  and sustained break below the range of 43345.95---42987 may trigger big fall and will severely threaten the long term uptrend too.

IMPORTANT NOTE: -- It seems that the on-going up move may be over but chances of bounce back are still alive till it holds the range of 43345.95---42987, especially the 43345.95 levels in particular. Therefore it is buying on decline market now till it holds the mentioned range. 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 43345.95 and sustains. Please note that it may get into strong up momentum track only if it moves above 44710.55(figure may change) and sustains on the closing basis, else it may exhaust also at any point of time. So be watchful.

TRADING TIPS:--

1. Safe traders should avoid long trades for the day. But aggressive traders can also try long trade on decline near or within the range of 43345.95---43000 with a stop loss of 42900.

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 43850---43950 with a stop loss of 44050 or can sell below 43580 with a stop loss of 43750 for intraday corrective gains. It could be a risky trade.

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. 

Thanks 

Narendra Kumar Surana

Email—suranank@gmail.com

Mobile—8240951127/9831313654.