2 2 2
CNX-BANK NIFTY
Open—47899.35--High—48829.70--Low—47873.15---Close—48768.60
on 23.5.2024.
Support:48636.45/48292.25/48203.45/48161.25/47737.20/47313.35/47279.80/46919.70/46579.05/46529.05/45828.80.
Resistance: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 low of the day and thereafter it steadily moved up and finally ended the day
with a robust gain of 986.65 points. It is still into correction mode for its earlier
rise, but today it closed above its most critical points of 48203.45---48292.25
& 48636.45, which is a huge positive sign and now it is on the up
strong up momentum track and if it holds 48636.45 on the closing basis
then the up move is likely to continue. Please note that in the weak scenario
even if it manages to hold its correction threshold point of 48393.94(figure
may change) for its very recent rise and its critical point of 48292.25
& 48203.45 and in the worst case scenario if it manages to hold its
pullback threshold point of 47689.25(figure may change) even then
the chances of continuation of the up move will be alive. But it is suggested
to be alert in the long trade if it sustains below 48636.45.
STRENGTH:-
1. It is in
the long term uptrend as of now.
2. The short
range for it now is between 49974.75---47737.20 and the long range is
between 49974.75----47737.20----46913----46579.05.
3. After a
long time it is above its most critical points of 48203.45---48292.25 &
48636.45, and it must stay above these points to keep up the strong up
momentum going in the year 2024.
4. It is above
its all short term moving averages on the daily and weekly chart and the
important average range is between 48298---48131---48111(figures will change
every day), and if it sustains above
it on the closing basis then the up move may continue.
5. It is
above its medium term moving averages also.
6. 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 48832---49269----49377
and if it moves above 49377 and sustain on the closing basis then it
could retest its all-time high of 49974.75 or may go beyond it also.
7. Moving
down the possible good bounce back point could be at 48636.45—48479---48393.94----48292---48203---48126---47876---47737.20---47689.25----47380---47353----47258---47037---46579.05(figure
may change), It is into correction mode for its earlier rise, break below
48636.45 could be an alert point, break below 48393.94 will push it into
correction mode for its recent rise , break below 48292.25 & 48203.45
will be an warning sign, break below 47689.25 may end the on- going up
move, sustained break below 47353 & 47258 can pull it down to 46579.05
sustained break below 47037
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 47037 &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.
8. It has made
higher top and bottom on the line chart.
9. The price
action has been mixed for the last few days and today it was positive.
WEAKNESS:-
1. It is into
correction mode for its earlier rise and it will get out of it, if it moves
above 49173.36 & 49446.69 and sustain on the closing basis.
2. Some important
technical indicators are weak on the daily/weekly and monthly charts and
pointing that it could head downs in coming days/weeks and months.
3. 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.
OVERALL VIEW: -- After today’s move it has strengthen a lot, as it moved above its most
critical point of 48203.45---48292.25 & 48636.45 and if it sustain
above these points particularly above 48636.45 the up move is likely to 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. The long term trend is up,
but the short term bias is slightly negative as of now. Be alert in long trade
below 48636.45 and avoid long trade below 48203.45 for sure.
TRADING CALL: --
1. Long trade can be tried on decline if
it holds 48636.45 for some time with a stop loss of 48480 or if
it moves above 48830 and maintain for some time with a stop loss of 48600.
2. Short
trade can be tried on the rise near or within the range of 49350 —49450 with
a stop loss of 49600. 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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