A TECHNICAL UPDATE ON CNX-BANK NIFTY—27.12.2023

 

 

 

 

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 CNX-BANK NIFTY

Open—47576.40--High—47838.45--Low—47411.65--Close—47724.85 on 26.12.2023.

Support: 47575/47454/47420/47231/47123/46919.70/46886.90/46850/46484.45/46369.50/46310.40/45905.85/45893.80/45816/45782.75/45655.50/45238.80/45118.05/44949.90/44779.65/44710.55/.43600.35/44547.80/44498.60/44279.40/44151.80/43830.75/43796.75/43345.95/43230.95/43078.90/43038.25/42986.45

Resistance47808/47856/47918/ 47998/48021/48081/48166.15/48220/48272/48478/48722/48925/49005/49696/49857/50850.

(Bold and underlined figures are most important)

It opened on a positive note and had both side movement during the day and finally ended the day with a gain of 233 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 44951.10), so be alert, cautious and watchful.

It is already into very short and deep short correction mode for its recent as it is below its threshold point of 47905.35 &47815.73, please note that break below 47042.55 & 46776.92(figure may change) will push it into 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. 

It is very important to mention here that  four out of five important technical indicators are negative now and indicates that it could drag it down to  46850 or lower levels in coming days, which is concerning. However as long as it holds the level of 47226.56(figure may change) on the closing basis then the chance of up move will be alive, else it may head  down but moving up it may face strong resistance at 47815.73----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 also. Similarly moving down its good support or bounce back points could be at 47723----47570---47435---47416—47226 (figure may change) and the strongest bounce back points could be in the range of  46919----46886 and then 46507 or earlier, please note that break below 46886 & 46507 may accelerate the fall.

IMPORTANT NOTE: -- THE RANGE FOR IT IS BETWEEN 47226.56----47960 NOW AND SUSTAINED BREAKOUT ON THE EITHER SIDE WILL DECIDE THE FURTHER DIRECTION FOR IT. IT IS NEEDLESS TO MENTION HERE THAT IT IS IN THE LONG TERM UPTREND AS OF NOW. BUT IN VIEW OF WEAK TECHNICAL INDICATORS ON THE DAILY CHART THEREFORE ONE SHOULD CAUTIOUSLY APPROACH THE MARKET FOR THE LONG TRADE

TRADING TIPS:--

1. For safe traders long trade can be tried on decline near or within the range of 47490---47445 with a stop loss of 47200. But aggressive traders can also try long trade on sharp decline near or within the range of 46919----46886 with a stop loss of 47750 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 and deep 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 48080—48160 with a stop loss of 48240 or sell below 47400 with a stop loss of 47550. It could be a risky trade but worth trying for intraday gains.

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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