Wednesday, 13 December 2023

TECHNICAL UPDATE ON CNX-BANK NIFTY—14.12.2023

 

 

 

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 CNX-BANK NIFTY

Open—47190.75-High—47201.95--Low—46886.90--Close-47092.25 on 13.12.2023.

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 but in later half of the day it staged smart recovery and finally ended the day with a meager loss of 5.30 points. It continued the down move for the 2nd day and the price action has also been weak for the last two days, therefore if it does not stage a sharp recovery in a day or two then it may head down further, which please note. However as long as it holds the key points as mentioned below the hope of resuming the strong up move will be alive. It is important to mention here that the gap filling threat on the daily chart is fading out but it is still looming on the weekly chart, so be alert and 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 been happening for the last two days, 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 then it 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  showing distinct negative divergence on the daily chart which is slightly concerning and it seems that it may extend the down move from here, however the other parameters are still good 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 47380---47450 with a stop loss of 47590.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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