2 2 2
CNX-BANK NIFTY
Open—48668--High—49052.95--Low—48644.80---Close—48971.65
on 24.5.2024.
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 negative note near its critical point
of 48636.45 and it held this point
and steadily moved up and finally ended the day with a gain of 203.05
points. After yesterdays big range movement today`s move was a very small range movement which
indicates that it may be having a big move on the either side in the next 1-2 trading sessions. It is still
into correction mode for its earlier rise, but it is well above its most
critical points of 48203.45---48292.25 & 48636.45 and if it sustains
above this range 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 48564.50(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 well 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 48363---48322---48193---48116(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 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 48832---48636.45—48564.50---48479---48292.25---48262---48203.45---48126---48018---47774---47737.20---47689.25----47472---47397----47258---47064---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 48564.50 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 47397 & 47258 can pull it down to 46983
&46579.05 sustained break below 47064
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 47064---46983 &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: -- It is on
a good footing technically 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
then the up move is likely to continue. Please note that sustained break below
this range may drag it down. 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, the short term bias is also up with slight
caution as of now. Be alert in long trade below 48636.45 and avoid long
trade below 48203.45 & 48116 for sure.
TRADING CALL: --
1. Long trade can be tried on decline near
48640 with a stop loss of 48540 or if it moves above 49073 and maintain for some time with a stop loss
of 48840.
2. Short
trade can be tried on the rise near or within the range of 49350 —49450 with
a stop loss of 49550. 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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