A TECHNICAL UPDATE ON CNX-BANK NIFTY—10.4.2024

 

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CNX-BANK NIFTY

Open—48810.80--High—48960.75-Low—48568.25---Close—48730.55 on 9.4.2024.

Support: 48722/48636.45/48381.95/48305.40/48292.25/48219.95/48203.45/48166.15/48161.25/47795/47588/47481.35/47363.40/47259.85/47191.65/47010.80/46919.70/46892.35/46886.90/46529.05/46507.15/46426.85/46369.50/46310.10/46181.20/45905.85/45828.80/45661.75/45655.50/ 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: 48745/48796/48938/49052/49328/49603/49688/49716/49781/49911/50038/50244/50494/50740.

(Bold and underlined figures are most important)

It opened with an up gap and went up further and hit a new all-time high of 48960.75 and filled the today’s gap during the day and finally ended the day with a gain of 148.85 points. It is showing good strength, therefore up move is likely to continue. But the gap it created 4.4.2024 is still there and if it makes an effort to fill the gap in next 1-2 trading sessions, which is technically possible then it can come down to 47676. But if it fails to fill the gap in the stipulated time then chances of filling the gap will recede. 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, however as long as price action and other parameters supports it may continue to move upside with in between correction, but the fear of moving down may haunt 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 has closed above all the critical points today, which is hugely positive sign and if it sustains above these points it could be heading for much higher levels in coming days, 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 48745----48796---48938----49052(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 48636.45----48564.05---48292.25----48221.61---48203.45---48167.96---48035.35----47998.38---47891----47828.79---47795-----47705----47695---47610----47617---47571.37----47532—47496----47391.05---47343—47279.80---47270.25----47246----47029.20---46995-----46949.45---46825---46720---46635----46533---46444---46379.26---46369.50---46335---46310.40----45828.80---45661.75(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 sustained break below 48636.45 will be an alert sign sustained break below 48564.05 will push it into very short correction mode for its recent rise, sustained break below the range of 48292.25----48221.61---48203.45 may dampen or end the up move for a while, break below 47891 will deepen the correction, break below the range of 47532---47496---47391.05---47343---47246 may trigger fresh fall, thereafter break below each point will weaken it further.    

It is important to mention here 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 two 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 a concern. However, on the other parameters it looks very good such as moving average placement, making higher top & bottom and price action has been consistently good and positive, 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 caution and alert. It is in the long-term uptrend; therefore it is buying on decline market now.

TRADING TIPS: --

1. Long trade can be tried on decline near or within the range of 48640----48570 with a stop loss of 48450 or if it moves above 48828 and maintain for some time with a stop loss of 48610.

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 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 49075—49150 with a stop loss of 49250. 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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