2 2 2
CNX-BANK NIFTY
Open—48113.90--High—48114.05--Low—47435.25---Close—47781.95
on 22.5.2024.
Support: 47737.20/47313.35/47279.80/46919.70/46579.05/46529.05/45828.80.
Resistance:48161.25/48203.45/48292.25/48636.45/ 49057.80/49173.36/49262/49396.75/49446.69/49676/49732/49883/49974.75.
It opened on a positive note and the open was almost
the high of the day and thereafter it steadily moved down and hit day’s low of 47435.25 but staged last minute recovery
and finally ended the day with a loss of 266.25 points. It was already into correction mode for its earlier
rise and today it slipped into corrective mode for its recent rise also as it
closed below its threshold point of 47958.50(figure may change) which is
a weak sign. However it is still above its pullback threshold point of 47689.25(figure
may change) and as long as it holds it chances of continuation of the up
move will be alive, else down move may continue.
STRENGTH:-
1. It is in
the long term uptrend as of now. But break below 47011 will threaten the
uptrend.
2. The short
range for it now is between 49974.75---47737.20 and the long range is
between 49974.75----46913----46579.05.
3. It is
above its pullback threshold point of 47689.25(figure may change) and if
it sustains above it on the closing basis then the rally can extend further and
the possible upside target or resistance points could be at 47958.50---48126---48203---48292---48479---48636.45—48832---49269----49377.
4. Moving
down the possible good bounce back point could be at 47737.20---47689.25----47380---47258---47011---46579.05(figure
may change), It is into correction mode for its earlier gain and recent
gains also, break below 47689.25 may end the on- going up move, sustained break below 47011 will
threaten the long term uptrend and finally sustained break below 46579.05
could be a warning sign and can drag it down to devastatingly lower levels in
coming days and may make the on-going correction more painful time wise and
value wise both, which may please be noted. So 47011 &46579.05 is a very
strong and may be the last bounce back support points as of now or make or
break point or benchmark point.
5. It has
made short higher top and bottom on the line chart now.
WEAKNESS:-
1. It is into
correction mode for its earlier rise and recent rise also and it will get out
of it, if it moves above 47958.50---49173.36 & 49446.69 and sustain
on the closing basis.
2. It is below
its most critical points of 48203.45---48292.25 &48636.45, please
note that it is must to stay above these point to keep up the up momentum going
in the year 2024.It will catch up momentum above 48636.45 only.
3. It is
below some of its short term moving averages on the daily and weekly chart and
the important average range is between 48295---48085---48043(figures will
change every day), sustained close above this range may provide good
strength and an impetus to move up.
4. It is
below some of its medium term moving averages also.
5. Technical
indicators are weak on the daily/weekly and monthly charts and pointing that it
could head down to much lower levels in coming days/weeks and months.
6. Volatility
can be seen in the market quite often, which is not a good sign for a steady
market condition and it can eventually drag it down may be drastically in the coming
days/weeks and months. So be watchful.
7. The price
action has been mixed for the last few days and today it was weak.
OVERALL VIEW: -- It is into the correction mode for its earlier gains and recent rise also but
the pullback mode is also on but the technical setup has weakened. Therefore if
it manages to hold its pullback threshold point of 47689.25 on the
closing basis the chances of up move will be alive, else down move may
continue.. Since it is in correction mode and the pullback mode is also on therefore
both side trades can be attempted depending on the price action. But please
note that both side trades amid volatility and in a corrective market could be
a risky affair, so be alert and watchful in your trades particularly in the
long trades. The long term trend is up, but the short term bias is negative as
of now.
TRADING CALL: --
1. Long trade can be tried on decline near
47690 with a stop loss of 47590 or if it moves above 47958.50 and maintain for some time with a stop loss
of 47670.
2. Short
trade can be tried on the rise near or within the range of 48200 —48300 with
a stop loss of 48400 or can sell below 47670 with a stop loss of 47870.
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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