Saturday, 13 April 2024

A TECHNICAL UPDATE ON CNX-BANK NIFTY—15.4.2024

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 
 CNX-BANK NIFTY

Open—48671.20--High—48882.65-Low—48477.55---Close—48564.55 on 12.4.2024.

Support: 48381.95/48305.40/48292.25/48219.95/48203.45/48166.15/48161.25/47795/47588/47481.35/47363.40/47259.85/47191.65/47010.80/46919.70/46892.35/46886.90/46529.05/46507.15/46426.85/46369.50/46310.10/46181.20/45905.85/45828.80/45661.75/45655.50/ 45430.70/44949.90/44633.85/44612/44547.80/44429/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.

Resistance: 48636.45/48722/48745/48796/48938/49052/49328/49603/49688/49716/49781/49911/50038/50244/50494/50740.

(Bold and underlined figures are most important)

It opened on a huge negative note and thereafter had both side moves during the day and finally ended the day with a loss of 422.05 points. As envisaged it corrected today and it seems to be a very normal correction after 9 days of rise, but how it will culminate eventually has to be seen in over the next 2-3 trading sessions, so watch out. The stipulated time for filling the gap it created on 4.4.2024 has elapsed therefore chance of filling the gap immediately has receded, but it will definitely fill the gap some day(gap point is 47676), so be alert. The volatility is continuing which is not a good sign for a steady market and eventually it can drag it down in coming days/weeks & months and today’s fall was may be just a trailer, however if other parameters supports, then it may continue to move upside with in between correction, but the fear of moving down may haunt at times because of the volatility, which please keep in mind.  

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 must sustain above these points on the closing basis. Please note that after a long time it closed above all these points on 9.4.2024 but just after 2 days, today it fell below 48636.45, but it is still above its other two key points and as long as it stays above 48292.25 & 48203.45 chances of the continuation of the up move will be alive but it will pick up strong up momentum only if it moves above 48636.45 and sustain on the closing basis. But sustained break below these points will weaken the up momentum and it may head down.   

Moving up from here its broad resistance points could be at 48636.45-----48637.89----48745-48796------48938----49057.40----49328----49603----49688---49716(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.

Similarly moving down further from here the broad support points could be at 48381.95--48295.45----48292.25----48203.45----47965.10----47816----47795-----47726---47635---47481.35----47416.73---47393----47279.80---47010.80---46886.90----46529.05---46507.15---46398---46369.50---46310.40----45828.80---45661.75-----44633.85----44429(Figure may change) and for in between and other support points please refer the support table at the top. Please note that it may bounce back from any of these points. But today it slipped into short correction mode for its recent rise as it closed well below its critical and threshold points of 48636.45 & 48637.89, sustained break below the range of 48292.25-------48203.45 may dampen or end the up move for a while, break below 47965.10 will deepen the correction, sustained break below the range of 47816---47726---47416.73---47393 may trigger fresh fall, thereafter break below each point will weaken it further and break below 46398 will threaten the long term uptrend, which may please be noted.    

It is important to mention here that all the five important technical indicators are positive now on the daily chart, which is a positive sign and indicates further upside may be ahead. But one important indicators on the weekly and two indicators on the monthly chart is negative pointing that it could head down in coming weeks/months, but weekly indicators have improved from the previous week which is good sign, but ,volatility & some weak weekly & monthly indicator is still a concern. However, on the other parameters it still looks very good such as moving average placement, making higher top & bottom and price action has been consistently good and positive, but today it was weak, therefore if the other parameters remain good the up move is likely to continue with in between correction. But I once again repeat that some weekly & monthly indicators speak otherwise at this point of time, so ride the on-going rise with extreme caution and alert. It is in the long-term uptrend; but gotten into short correction mode today, therefore both side trades can be tried depending on price pattern.

TRADING TIPS: --

1. Long trade can be tried on decline near or within the range of 48293----48200 with a stop loss of 48100 or if it moves above 48666 and maintain for some time with a stop loss of 48460.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair; but it has slipped into short correction today, therefore short trade can also 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 48800—48880 with a stop loss of 49100 or sell below 48420 with a stop loss of 48570. 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 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.

2

 

 

 
  

 

No comments:

Post a Comment

Thank you for sharing your views.