CNX-BANK NIFTY
Open—46640.90--High—46754.55--Low—45852.55---Close—45963.15
on 28.2.2024.
Support: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: 46181.20/46310.10/46369.50/46426.85/46507.15/46580/46886.90/46892.35/ 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 on a positive note then moved up
little further thereafter steadily moved down and finally ended the day with a loss of 624.90 points. After
4 days of fall it staged a weak relief rally yesterday and today it
plunged down again, which is a very weak sign. 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 all these points for a long time and now it is into short
& deep short corrective mode also 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 shortest possible time then correction may deepen and going down further the broad support points
could be at 45811---45677----45421.96---45278---45180---45016---44651(Figure
may change) and for in between and other support points please refer the
support table at the top. It is already into short & deep short term
correction mode, however it may bounce back from any of these points, but
sustained break below 45811 will threaten the long term up trend and
then break below each point will weaken it further and finally sustained break
below 44651 may jeopardize the long term uptrend, which please note.
Similarly moving up from here its broad
resistance points could be at 45999----46128---46327----46532---46441---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. But if it moves above the range of 46128—46327(range will change
daily) then it may gain some strength to resume the up move, if it moves
above 46670.88 & 46719.23 then it will get out of recent short
corrective mode, 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 despite
today’s fall on the daily chart four out of five important technical indicators
are still positive but showing signs that they may turn negative in coming days
and one indicator has turned negative today, 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 highly concerning. Furthermore now it is
below its entire short term moving averages on the daily chart and below some
on the weekly chart and below some medium term moving averages also on the
daily chart, made lower top & bottom on the line chart and the price action
is also weak. Therefore all together things are very dicey and pointing that if
it fails to stage a strong bounce back in a day or two then the down move may
continue. But please note that 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. It is sell on the rise market now.
TRADING TIPS:--
1. Long trade can be tried on decline if it holds the level of 45850
for some time with a stop loss of 45700. But aggressive traders can also
try long trade on sharp decline near or within the range of 44660---44550 with
a stop loss of 45350. 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 46300---46400
with a stop loss of 46500 or sell below 45811 with a stop
loss of 45970. 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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