TECHNICAL UPDATE ON CNX-BANK NIFTY—20.12.2023

 

 

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 CNX-BANK NIFTY

Open—47940.40--High—48017.00--Low—47646.05--Close—47870.90 on 19.12.2023.

Support:47918/ 47856/47808/47575/47454/47420/47231/47123/46850/46484.45/46369.50/46310.40/45905.85/45893.80/45816/45782.75/45655.50/45238.80/45118.05/44949.90/44779.65/44710.55/.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: 47998/48021/48081/48220/48272/48478/48722/48925/49005/49696/49857/50850.

(Bold and underlined figures are most important)

It opened on a positive note and finally ended the day flat and with a meager gain of 3.20 points. Please note that the gap it created on 14.12.2023 is still there and if it makes an effort to fill the gap in next 1 trading sessions, which is technically possible then it can come down to 47201.95, but if does not fill the gap in the stipulated time then the chance of filling the gap will recede. 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, so be alert and cautiously ride the on-going rise.

It is in the new territory and exhibiting good strength therefore it is likely to extend the up move further. But please note that in between short breather/correction will happen during the continuation of the up move. It went into very short correction for its recent rise yesterday and still into it as it is below its threshold point of 47905.35, it may resume the up move again once if it moves above it and sustain, else correction may extend, break below 47815.73---47042.55 & 46776.92(figure may change) will push it into 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  all the important technical indicators are positive now on the daily and weekly chart and on the  monthly chart all other indicators are positive except for two indicators which is slightly dicey which is not that concerning because the other parameters are very good as of  now and if price action supports then the indicator may also turn positive at the month end, 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 good correction. 

Moving up from here it may face resistance at 47998----48021----48081----48220---48272----48478---48722---48925--49005 (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 47856---47808---47727---47637---47588---47575---47464---47109---46886.90---46864---46599.13---46507.15----46369.50(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: -- IT IS EXHIBING GOOD STRENGTH AND IN NEW ZONE, BUT IN VERY SHORT CORRECTION ALSO BUT THE BIG CONCERN IS THAT IT HAS BEEN VERTICALLY MOVING UP FOR LAST SO MANY DAYS WITHOUT A MEANINGFUL CORRECTION AND VERTICAL RISE MAY HAVE VERTICAL FALL TOO AT TIMES, THEREFORE IT IS SUGGESTED TO RIDE THE ON-GOING RISE WITH EXTREME CAUTION AND ALERT BECAUSE EVEN IF IT GET INTO NORMAL CORRECTION IT COULD BE UPSETING FOR A WHILE. THE LONG TERM TREND IS HIGHLY BULLISH AS OF NOW. THEREFORE IT IS BUYING ON DECLINE MARKET TILL IT INDICATES OTHERWISE.

TRADING TIPS:--

1. Long trade can be tried if it moves above 47962 and maintain for some time with a stop loss of 47800 or if it holds 47867 for some time with a stop loss of 47750. But aggressive traders can also try long trade on the decline near 47590 with a stop loss of 47470.

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 48200---48240 with a stop loss of 48340. 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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