2 2 2
CNX-BANK NIFTY
Open—49477.10--High—49974.75--Low—49249.90---Close—49396.75
on 30.4.2024.
Support: 49173.36/49057.80/48636.45/
48292.25/48203.45/48161.25.
Resistance: 49446.69/ 49676/49732/49883/49974.75/50005/ 50296/50589.
It opened on a positive note and thereafter
had both side moves during the day and hit a new all-time high of 49974.75
but in last hour of trade it slipped down from the top and finally ended the
day with a loss of 27.30 points. After yesterdays robust up move today’s
movement gave a weak indication as it slipped into very short correction mode
because it closed below its threshold point of 49446.69, break below 49173.36
will deepen the correction, sustained break below 49057.80 will be an
alert sign, 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 48313---48183---48133 may
trigger fresh fall and it may witness accelerated down move. The bias is
bullish as of now, but since it gotten into corrective mode it may correct
further before resuming the up move again but if it moves above 49446.69
and sustain then it may resume the up move immediately. .
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 days/week/months with slight downward bias, 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 it is
short correction also so be cautious. 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 as it gave today.
TRADING CALL: --
1. Long trade can be tried on decline near or
within the range of 49250---49175 but not below it with a stop
loss of 49000 or if it moves above 49450 and maintain for some
time with a stop loss of 49230. Since it slipped into short
correction it would be relatively safe to try long trade above 49450.
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 49950
—50050 with a stop loss of 50150 or can sell below 49160 with
a stop loss of 49400. 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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