Commodities

Monday, 29 April 2024

A TECHNICAL UPDATE ON CNX-BANK NIFTY—30.4.2024

 


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CNX-BANK NIFTY

Open—48359.90--High—49473.60--Low—48342.70---Close—49424.05 on 29.4.2024.

Support:49057.80/48790.50/48636.45/ 8562/48292.25/48203.45.                           

Resistance: 49676/49732/ 49883/50005/ 50296/50589.        

 It opened on a positive note and thereafter steadily moved up and hit new all-time high of 49473.60 and finally ended the day with a robust gain of 1223 points. It exhibited extraordinary strength today and now if it holds its critical point of 49057.80---48790.50 & 48636.45 then the up move may continue with in between down correction, break below 49057.80 will be an alert sign, sustained break below 48790.50 will push it into short correction for the recent rise, sustained break below 48636.45 will be a warning sign, sustained break below 48292.25 & 48203 may derail the up momentum and finally sustained break below the range of 48186---48069---48001 may trigger fresh fall and it may witness accelerated down move. The bias is bullish as of now and the up move is likely to continue.   .    

The important technical indicators on the daily, weekly and monthly chart is giving mixed signal pointing that it may have both side moves in coming week/months, but as long as the other parameters such as moving average placement and price action remains good the up move may continue and eventually the indicators may also turn positive but as of now indicators weakness is still a concern. The long term trend is up therefore it is buying on decline market now. But the volatility is still continuing which is not a good sign for a steady market and eventually it can drag it down in coming days/weeks & months, so be alert and watchful and ride the on-going rise with slight caution because it may give severe downside corrective jerk at times.                                                                   

TRADING CALL: --                                                                   

 

 
1. Long trade can be tried on decline near or within the range of 48800---48680 but not below it with a stop loss of 48550 or if it moves above 49475 and maintain for some time with a stop loss of 49200.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair; but even then 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 50100—50250 with a stop loss of 50400. It could be a risky trade but can be tried 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.  

 

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