A TECHNICAL UPDATE ON CNX-BANK NIFTY—22.12.2023

  

 

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 CNX-BANK NIFTY

Open—47172.45--High—47932.40--Low—46919.70--Close—47840.15 on 21.12.2023.

Support:47808/47575/ 47454/47420/47231/47123/46850/46484.45/46369.50/46310.40/45905.85/45893.80/45816/45782.75/45655.50/45238.80/45118.05/44949.90/44779.65/44710.55/.43600.35/44547.80/44498.60/44279.40/44151.80/43830.75/43796.75/43345.95/43230.95/43078.90/43038.25/42986.45

Resistance:47856/47918/ 47998/48021/48081/48220/48272/48478/48722/48925/49005/49696/49857/50850.

(Bold and underlined figures are most important)

After yesterday’s reversal it opened with a down gap today and went down further and in the process it filled the gap of 14.12.2023(gap point-47201.95) and then staged a sharp bounce back and moving up filled the today’s gap also and finally ended the day with a gain of 394.85 points. It is important to mention here that for the earlier gaps, the gap filling threat on the daily chart had faded out but it is still looming on the weekly chart (gap point 20291), so be alert, cautious and watchful.

It is still into very short correction mode for its recent rise despite today’s decent bounce back as it is below its threshold point of 47905.35, please note that break below 47815.73—47042.55 & 46776.92(figure may change) will push it into deep short, medium and long correction mode for its recent rise and break below 46369.50 could be an extreme alert point and then correction may further deepen and can last longer. It is in the long term uptrend and bias is positive as of now and it is still buying on decline market till it indicates otherwise. But, in view of reversal bar it made on 20.12.2023 it is suggested to exercise some restraint in buying but it can definitely be tried at critical support points. 

It is very important to mention here that  three out of five important technical indicators have turned negative now and indicates that it could drag it down to  46850 levels in coming days, which is concerning. However if it holds the level of 47226.56(figure may change) on the closing basis then the chance of up move will be alive but moving up it may face strong resistance at 47906---47913---47960 the up move can exhaust at any of these points but if it moves above 47960 and sustain on the closing basis then it could retest its all-time high of 48219.95 or may go beyond it. Similarly moving down its possible support points or bounce back points could be at 47815---47723---47569---47416—47226 and then in the range of 46886---46780 and then 46507 or earlier (it did bounce back from 46919.70 today), please note that break below 46886 & 46507 may accelerate the fall.

IMPORTANT NOTE: -- AFTER YESTERDAYS REVERSAL ITS BOUNCE BACK TODAY WAS ROBUST WHICH INDICATES THAT IT MAY RESUME THE UP MOVE AGAIN. BUT IT MAY BEHAVE OTHERWISE ALSO SO WATCH IT FOR A DAY OR TWO FOR THE CONFIRMATION. THE LONG TERM UPTREND IS INTACT AS OF NOW.

TRADING TIPS:--

1. For safe traders long trade can only be tried if moves above 47875 and maintain for some time with a stop loss of 47750 or can buy on decline near or within the range of  47450---47400 with a stop loss of 47200. But aggressive traders can also try long trade on decline near or within the range of 46850----47780 with a stop loss of 47680 or near 46510 with a stop loss of 46300.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair, but it is into very short term correction mode for its recent rise, therefore short trade can also be attempted on reasonable rise or on price breakdown for intraday corrective gains but with extreme caution and alert. Short trade can be tried on the rise near or within the range of 48450—48500 with a stop loss of 48600. It could be a risky trade but worth trying.

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.

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