Thursday, 14 December 2023

A TECHNICAL UPDATE ON CNX- BANK NIFTY—15.12.2023

 



 

                                                                   CNX-BANK NIFTY

Open—47567.65-High—47943.60--Low—47510.85--Close-47732.30 on 14.12.2023.

Support: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: 47808/47917/48081/48925/50850.

(Bold and underlined figures are most important)

It opened with a big up gap and went up further and hit yet another all-time high of 47943.60 and finally ended the day with a handsome gain of 640.05 points. Please note that the gap it created today is still there and if it makes an effort to fill the gap in next 3-4 trading sessions, which is technically possible then it can come down to 47201.95. It is important to mention here that for the earlier gaps filling threat on the daily chart had faded out but it is still looming on the weekly chart, so be alert and cautiously ride the on-going rise.

It is in the new territory and exhibiting good strength and hitting new high every other day therefore it is likely to extend the up move further for sure. But please note that in between short correction will happen during the continuation of the up move, as it happened recently, but break below 47694.22---47604.60---46831 & 46565.78(figure may change) will push it into very short, 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 deepen and can last longer. 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 indicator which is still slightly dicey on daily & weekly chart, in fact it is still showing distinct negative divergence on the daily chart despite today’s robust rise which is slightly concerning and it seems that it may still get into down move again, however the other parameters are very good now and if price action supports then the indicator may also turn positive in coming days, therefore I once again repeat that the on-going up move is likely to extend further provided it holds the key points as mentioned above, else it may get into correction. 

Moving up from here it may face resistance at 47808—47887----47917----48081----48925 (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 47588---47575---47454---47420---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 46886.90 & 46507.15 could be concerning and can drag it down.

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 47730-----47550 with a stop loss of 47290.But aggressive traders can also try long trade on the sharp decline near or within the range of 47100---47000 with a stop loss of 46800.

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 48100---48200 with a stop loss of 48300.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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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