A TECHNICAL UPDATE ON CNX-BANK NIFTY—11.12.2023

 

 

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CNX-BANK NIFTY

Open---46797.20--High—47303.65-Low---46793.90---Close---47262on 8.12.2023.

Support: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: 47420/47454/47575/47808/47917/48081/48925/50850.

(Bold and underlined figures are most important)

It opened on a negative and then moved up and hit a new all-time high of 47303.65 and finally ended the day with a handsome gain of 420.60 points. It is important to mention here that the stipulated time for the gap it created on 4.12.2023 is over, therefore chance of filling this gap has dimmed, but the gap it created on 5.12.2023 is still there and if it makes an effort to fill this gap it may fill in next 1 trading session, which is technically possible and if it does then it can come down to 46484, but if it does not fill the gap in stipulated time as mentioned above then chances of filling the gap may recede for the time being.

It is in the new territory and exhibiting good strength therefore likely to extend the up move further. It corrected on 6.12.2023 which was a very normal correction after the vertical it witnessed recently and closed mildly positive yesterday and today it resumed the up move again. Please note that in between short correction can happen during the continuation of the up move, but break below 46369.50 could be an alert point and break below 46342.23& 46076.40(figure may change) will push it into very short and deep short correction mode for its recent rise and then it may deepen and may last for few days. It is in the long term uptrend and bias is bullish as of now and it is buying on decline market till it indicates otherwise.

It is important to mention here that almost all the important technical indicators are positive now on the daily ,weekly and monthly chart  except for one which is slightly dicey but may turn positive in coming days if price action supports, therefore the on-going up move is likely to extend further provided it holds the key points as mentioned above. Kindly, note that as long as price action remains positive there is no major threat and up move can extend further with intermittent correction. 

Moving up from here it may face resistance at 47420---47454---47575---47808(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. So watch out.

Kindly note that moving down from here it’s possible support points would be at 47231---47123---46850---46484.45----46369.50----46310.40---45716.61---45517---45451----44951---44764—44580---44481(figure may change) it may bounce back from any of these points, but break below each support point could weaken it and can drag it down further, which please note.

IMPORTANT NOTE: -- Close below 46834 & 46507 could be concerning.

TRADING TIPS:--

1. Long trade can be tried if it moves above 47305 and maintain for some time with a stop loss of 47100 or can buy on decline near 46835 with a stop loss of 46730. But aggressive traders can also try long trade on the sharp decline near or within the range of 46507---46369 with a stop loss of 46000.

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 47770---47820 with a stop loss of 47920.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 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.