A TECHNICAL UPDATE ON CNX-BANK NIFTY—22.2.2024

 

 

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 CNX-BANK NIFTY

Open—47363.40--High—47363.40--Low—46886.95---Close—47019.70 on 21.2.2024.

Support: 46892.35/46919.70/47010.80/46507.55/46369.50/46310.10/46181.20/45655.50/ 45430.20/45118.05/45096.85/44949.90/44710.55//44547.80/44429/44279.40/44182.50/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.

Resistance: 47481.35/47588/48203.45/48219.95/48292.25/48305.40/48381.95 48636.45/48722/48925/49024/49567.60/49696/49857/50324/50633.60/50850.

(Bold and underlined figures are most important)

It opened with an up gap and the open was high also for the day and then it started moving down and in the process it filled the days gap also and finally ended the day with a loss of 74.50 points. As envisaged it took a breather after 6 days of straight rise it may correct further so be watchful.

The chart setup is improving but it is not yet out of woods as it is already into deep correction mode for its earlier gains. It is important to mention here that its critical & important points are 48203.45---48292.25 & 48636.45 and to keep up the up momentum going on in the year 2024 it has to sustain above these points on the closing basis. It is way below these points but it has been inching up towards it in the last few days and moving up from here its broad resistance points could be at 47030---47096---47388---47448---47644---47795(figures may change) and for in between and other resistance points please refer the resistance table at top. Please note that it may correct at any of these points and then may resume the up move or may exhaust the up rally for a while but if it moves above 47795 and sustain on the closing basis then it could retest its all-time high of 48636.45 or may go beyond it also. Similarly moving down its broad support points could be at 46719.23---46670.88---46572---46441---46320---46142---46037---45999---45933.70---45763---45730---45677----45497---45421.96---45278---45180(Figure may change) and for in between and other support points please refer the support table at top. Please note that it may bounce back from any of these points and resume the up move, but sustained break below 46719.23 & 46670.88 may will push it into short & deep short correction mode for very recent rise and then break below each point will weaken it further.    

It is important to mention here that all the five important technical indicators are positive now on the daily chart indicating that the on-going rise may continue. But four out of five indicators on the weekly & one on the monthly chart is negative pointing that it could head down in coming weeks/months. Although it took a breather today but please note that the other important parameters such as moving average placement, which is improving day by day and the price action is also good, therefore if these parameter remains good and improves and it holds its key points as mentioned above then the up move can continue and last but not the least in worst case scenario as long as it holds 45730 & 45421.96 (figure may change) on the closing basis chances of up move will always be alive. 

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 46700----46670 with a stop loss of 46500 or can be tried if it moves above 47100 and maintain for some time with a stop loss of 46870. But aggressive traders can also try long trade on sharp decline near 45730 with a stop loss of 45500.

2. It is into long term uptrend but in the deep long corrective mode for earlier rise, therefore short trade can be attempted on reasonable rise or on price breakdown for intraday corrective gains but with extreme caution and alert. Short trade can be tried on the rise near or within the range of 47400---47500 with a stop loss of 47600 or sell below 46870 with a stop loss of 47050 It could be a risky trade but worth trying for intraday corrective gains

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 favourable 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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