Friday, 9 February 2024

A TECHNICAL UPDATE ON CNX-BANK NIFTY—12.2.2024

 

 

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 CNX-BANK NIFTY

Open—44986.75--High—45718.15--Low—44859.15---Close—45634.55 on 9.2.2024.

Support:45430.20/45071.20/  44710.55/44949.90/44547.80/44429/44279.40/44151.80/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.

Resistance: 45655.50/46310.10/46369.50/46580.30/46892.35/46919.70/47010.80/47481.35/47588/48166.15/48203.45/48219.95/48292.25/48305.40/48381.95 48636.45/48722/48925/49024/49567.60/49696/49857/50324/50633.60/50850.

(Bold and underlined figures are most important)

It opened on a negative note and had both side moves during the day and finally ended the day with a robust gain of 622.55 points. Please note that it is exhibiting huge volatility in fact it is having  see-saw movement quite often , which is not a good sign for a steady and smooth movement and may eventually drag it down lower.

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 in the year 2024 it has to sustain above these points on the closing basis else it may head down.  It is way below all the three critical points, it is well below all  the important correction threshold points for its recent months rise and most critical points  48231.30---48133.94---47999.87---47447.93---47387.89---47360.75---47095.12----46311----46270.95(figures may change), which is a hugely negative sign and indicates further fall may be  ahead. Please note that break below 44746.91(figure may change) will push it into deep medium term correction mode for its earlier rise. It is already into the long term correction mode now for its recent months rise, but the good point is that it closed shade above its long term moving average upper band of the range, which is placed at 45626.51(figure will change every day) for the day, it it maintains above it on the closing basis then up move may continue. It is important to mention here that its short and long pullback threshold points are at 45339 & 45421.96(figure may change) and it bounced back to close above these points today, which is a positive sign. Please note that sustained close above these points will give a hope of a meaningful up move or continuation of the up move, else down move will continue.  

It is important to mention here that three out of five important technical indicators are negative on the daily chart and indicates that it may go down further in the coming days. Furthermore three most important indicators on the weekly & one on the monthly chart are also negative and it is into long term corrective mode. The chart setup is weak, it has made lower top & bottom on the line chart, it is below all of its short term moving averages on the daily and weekly chart, below few medium term moving averages on the daily chart, but it just managed to close above its long term moving average upper band of the range today. Please note that all together things are dicey and weak and pointing that it may head down in coming days. However, if it holds the level of 45626.51---45421.96 &45339(figure may change) on the closing basis then the chances of up move will always be alive. 

Moving down from here its important support points could be at 45626.51---45421.96 45339-----45010.35---44949.50---44921----44746.91---44607----44506---44404----44312---44279.40---43830.25---43796.75---43600.35(figures may change), please note that it can bounce back from any of these points and may resume the up move again, else may keep moving down. 

Similarly moving up it may face strong resistance at 45661-----45876-----45951.35---46036----46116----46311---46413---46486---46533----46825---47029----47391---47530----47644----47795---48203.45---48219.95---48231.30----48252.80---48292.25---48305.40---48381.95----48636.45(figure may change) and it can correct at any of these points and then may resume the up move again or it may exhaust the up move at any of these points also and may head down. 

IMPORTANT NOTE: -- PLEASE NOTE THAT AS LONG AS IT HOLDS THE KEY POINTS OF  45339---45421.96 & 45626.51(FIGURE MAY CHANGE) ON THE CLOSING BASIS CHANCES OF UP MOVE WILL BE ALIVE, ELSE DOWN MOVE MAY CONTINUE. 

TRADING TIPS:--

1. Long trade can be tried if it holds the range of 45626.51---45421.96 with a stop loss of 45280. But aggressive traders can also try long trade on sharp decline near or within the range of 45000---44860 with a stop loss of 44700 or if it moves above 45750 and maintain for some time with a stop loss of 45580.  Please note that long trade in corrective mode could be a risky affair but can be tried at extreme critical support points with strict stop loss for pullback gains.

2. It is into long term uptrend but in the deep long corrective mode and long term uptrend is also threatened; but pullback mode is on today, but even then 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 46150---45250 with a stop loss of 45400. 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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