A TECHNICAL UPDATE ON CNX-BANK NIFTY—27.2.2024

 

 

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 CNX-BANK NIFTY

Open—46615.85--High—46893.15--Low—46513.55---Close—46576.50 on 26.2.2024.

Support:46507.15/46426.85/46369.50/46310.10/46181.20/45655.50/ 45527/45430.70/45238.80/45071.20/44949.90/44710.55//44547.80/44429/44279.40/44182.50/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.

Resistance:46580/46886.90/46892.35/ 47010.80/47259.89/47363.40/47415.85/47481.35/47588/48166.15/48203.45/48219.95/48292.25/48305.40/48381.95 48636.45/48722/48925/49024/49567.60/49696/49857/50324/50633.60/50850.

(Bold and underlined figures are most important)

It opened with a down gap and then had both side moves during the day and in the process filled the days gap also and finally ended the day with a loss of 235.25 points.  It is needless to mention here that it has been exhibiting volatility for a long time now and having a see-saw movement quite often, which is a huge concern and is not a good sign for a steady market and may eventually drag it down sharply in coming days/weeks & months.

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 has been way below these points for quite some time but had been inching up towards it before the on-going down move started and today it slipped into short & deep short corrective mode for its very recent rise as it closed below its threshold points of 46719.23 & 46670.88(figure may change). Please note that if it does not bounce back above these points in next 2-3 trading sessions then correction may deepen and going down further the broad support points could be at  46532---46441---46330----46067---45999----45783---45677----45421.96---45278---45180---45016---(Figure may change) and for in between and other support points please refer the support table at the top. It has slipped into short & deep short term correction mode today, however it may bounce back from any of these points, but sustained break below the range of 46330—46067 may accelerate the fall, break below 45783 will threaten the long term up trend and then break below each point will weaken it further.    

Similarly moving up from here its broad resistance points could be at 46670.88---46719.23---47030---47096---47361---47448---47644---47795(figures may change) and for in between and other resistance points please refer the resistance table at the top. Please note that it may correct at any of these points and then may resume the up move again or may exhaust the up rally for a while. Please note that if it moves above then it will get out of recent short corrective mode and if it moves 47361 and sustain then it will get out of all corrective modes and finally 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. 

It is important to mention here that all the five important technical indicators are positive now on the daily chart indicates that chances are that it may still resume the up move after this down move is over. 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 and this is slightly concerning. Furthermore today it has gone below few short and medium term moving averages and the price action was also weak. Therefore if these parameter does not improve then the fall may continue and last but not the least in worst case scenario as long as it holds  45421.96 (figure may change) on the closing basis chances of up move will  be alive. 

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 46333----46290 with a stop loss of 46060 or can be tried if it moves above 46721 and maintain for some time with a stop loss of 46500. But aggressive traders can also try long trade on sharp decline near 45780 with a stop loss of 45600. Please note that long trade in a corrective mode could be a risky affair ,but can be tried in strong support range or point for pullback gains.  

2. It is into long term uptrend but in the deep long corrective mode for earlier rise, for short & deep short term correction mode for recent rise, but pullback mode is also on, even than 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 46860---46960 with a stop loss of 47100. 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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