A TECHNICAL UPDATE ON CNX-BANK NIFTY—4.12.2023

 

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CNX-BANK NIFTY

Open---44580.15---High—44951.10---Low---44531.75---Close—44814.20 on 1.12.2023.

Support: 44779.65/44710.55/.43600.35/44547.80/44498.60/44279.40/44151.80/43830.75/43796.75/43345.95/43230.95/43078.90/43038.25/ 42986.45/42582.20/42105.40/41962/41840.15/41829.60/41729/41569/40819.15/39600.25/39419.50..

Resistance: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 has gained good strength in the last few days and can extend the on-going up move from here but moving up its major hurdle point is at 45363 & 45517 and if it move above 45517 and sustains on the closing basis then it could retest its all-time high of 46369.40 or may go beyond it also. Similarly break below 44545 & 44279.50(figure may change) will push it into very shot & deep short term correction mode for its recent rise and can drag it down lower which please note, else it will continue with the up move with intermittent correction. The long term trend is up as of now. 

It is important to mention here that all the five important technical indicators on the daily chart are positive now therefore the on-going up move can extend further provided it holds the key support range as mentioned above, furthermore despite the good rise still four out of five indicators on the weekly chart and two out of five indicators on the monthly chart are negative, which is concerning and indicates that after the on-going up move exhaustion it may still witness deep fall in coming weeks/months. But as long as price action remains positive there is no major threat and up move can extend with intermittent correction, so keep a watch on the price action. 

Moving up from here it may face resistance at 44951.10---45118.05---45363----45517---45655.50----45782.75---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 44710.55---44547.80---44545----44420.95---44279.50----43830.75---43796.75---43600.35---43345.95---43230.95---43112(figure may change) it may bounce back from any of these points, but break below each support point will weaken it and finally sustained break below 43345.95 & 43230.95 may trigger big fall.

TRADING TIPS:--

1. Long trade can be tried on decline near 44580---44530 with a stop loss of 44450 or if it moves above 44951.10 and maintain for some time with a stop loss of 44750. Please note that long trade below 44545 could be a risky affair for the day.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair, but even then short trade can be attempted on reasonable rise for intraday corrective gains but with extreme caution and alert. Short trade can be tried on the rise near or within the range of 45150---45250 with a stop loss of 46380.

 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.