TECHNICAL UPDATE ON CNX-BANK NIFTY—13.12.2023

 

 

 

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 CNX-BANK NIFTY

Open--47421.70--High—47454--Low--47004.05---Close-47097.55 on 12.12.2023.

Support: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: 47123/47231/47420/47454/47575/47808/47917/48081/48925/50850.

(Bold and underlined figures are most important) 

It opened on a positive note but thereafter did not move much higher and then started slipping down and finally ended the day with a loss of 216.70 points. It reasonably corrected today but it closed below the low of the previous day after so many days, which is slightly concerning and indicates that correction may extend if it does not stage a bounce back in a day or two, however it is still above its key points as mentioned below, so the continuation of the up move hope is still there. Furthermore the gap filling threat on the daily chart is fading out but it is still looming on the weekly chart, so be watchful. 

It is in the new territory and exhibiting good strength therefore likely to extend the up move further. But please note that in between short correction will happen during the continuation of the up move and this is what has happened today, but break below 46559.74(figure may change) will push it into very short correction mode for its recent rise, break below 46369.50 could be an alert point for long trade and finally break below 46294.11(figures may change) may deepen correction and it can 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 indicator which is still slightly dicey on daily & weekly chart despite recent rise, in fact today it gave distinct negative divergence on the daily chart which is slightly concerning and it seems that the correction may extend, however the other parameters are still strong and if price action supports 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 correction may deepen. 

Moving up from here it may face resistance at 47123---47231---47420---47454---47575---47588---47808--47887(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 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 and can drag it down.

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 47000-----46835 with a stop loss of 46700. But aggressive traders can also try long trade on the sharp decline near or within the range of 46560---46369 with a stop loss of 46200.

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 47750---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.