A TECHNICAL UPDATE ON CNX-BANK NIFTY—24.11.2023

 

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CNX-BANK NIFTY

Open---43452.75---High—43649.65---Low---43451.35---Close—43577.50 on 23.11.2023.

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 to positive note and then moved up further during the day and finally ended the day with a gain of 127.90 point. The overall technical setup is weak as of now, 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 looking at overall technical assessment further fall from here cannot be ruled out in coming days with intermittent relief rallies. But please that that the only good point is that it is still well above its most critical and trend deciding range of 43345.95---43112----43087---43038.25----42986.45(figures may change) , therefore as long as it holds this range on the closing basis chances of up move will be alive. But for the smooth and steady up move it has to move above 43890---44151.80--- 44236----44421(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 44710.55----44720---45363---45517(figure may change) and sustain on the closing basis. 

Please note that now only two out of  five important technical indicators on the daily chart are  positive, therefore the chances of moving up from here has receded as of now, 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 it may 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 and it was dicey today , 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 in the long trade. 

Moving up from here it may face resistance at 43583----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 recent 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 buying can be tried near or within the said range, but not below this 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 trade for the day. But aggressive traders can long trade on decline near or within the range of 43345.95---43000 with a stop loss of 42900 or if it moves above 43650 and maintain for some time with a stop loss of 43450 for intraday gains. 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 43800---43850 with a stop loss of 43950.

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.