A TECHNICAL UPDATE ON CNX-BANK NIFTY—22.11.2023

 

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CNX-BANK NIFTY

Open---43790.95---High—43790.95---Low---43586.45---Close—43689.15 on 21.11.2023.

Support:43600.35/43345.95/43078.90/43038.25/ 42986.45/42582.20/42105.40/41962/41840.15/41829.60/41729/41569/40819.15/39600.25/39419.50..

Resistance: 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 with an up gap and the open was the day’s high also and then it moved in a short range and finally ended the day with a gain of 104.20 point. The overall technical setup looks pretty weak as of now and it is already into deep short & medium term correction mode for its earlier rise and into deep short correction mode for its recent rise also, therefore  further fall from here cannot be ruled out in coming days. 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----43079---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--- 44233(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----44740---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 on-going up move exhaustion  it may still witness deep fall in coming days/ weeks/months because  it is the up move within the downtrend only as of now. Furthermore the price action has also not been consistently positive in the recent past but today it was positive, 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 43583----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 break below 43583 will weaken it  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 have been 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. Long trade can be tried if it moves above . But aggressive traders can also try long trade on decline near 43590 with a stop loss of 43490 or can try on sharp 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 43950---44050 with a stop loss of 44150 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.