2 2 2
CNX-BANK NIFTY
Open—49105.90--High—49688.85--Low—49051.25---Close—49281.80
on 27.5.2024.
Support:49262/49173.36/49057.80/48636.45/48292.25/48203.45/48161.25/47737.20/47313.35/47279.80/46919.70/46579.05/46529.05/45828.80.
Resistance: 49396.75/49446.69/49676/49732/49883/49974.75.
It opened on a positive note and had both side moves
during the day and finally ended the day with a gain of 310.15 points. As expected it
had a big day but it could not sustain at the higher levels, however
technically it is on a good footing now, but it is still into correction mode for its earlier rise,
but if it manages to hold it correction threshold point of 49050.33(figure
may change) for its very recent rise and in worst case scenario if it hold
its most critical points of 48636.45---48292.25 & 48203.45 then
the up move is likely to continue, else it may head down. But it is suggested
to avoid 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. 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 48493---48426---48376---48297---48287---48269(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 49377---49397---49447---49676---49732---49883---49974.75
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 49173.36---49050.33---48855---48655---48636.45—48336---48292.25---48276---48203.45---48126---48016---47876---47737.20---47689.25----47621----47524----47258---47098----46983.25---46579.05(figure
may change), It is already into correction mode for its earlier rise, break
below 49050.33 will push it into correction mode for its recent rise, break
below 48636.45 could be an alert point, , 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 47524 & 47258 can pull it
down to 46983 &46579.05 sustained
break below 47098 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 47098---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.
10. All the
important technical indicators are positive on the daily chart.
WEAKNESS:-
1. It is into
correction mode for its earlier rise and it will get out of it, if it moves above
49446.69 and sustain on the closing basis.
2. Some
important technical indicators are weak on the 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 and if it holds 49050.33 and in worst case if
it holds 48636.45 on the closing basis 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 for sure.
TRADING CALL: --
1. Long trade can be tried on decline near
49050 with a stop loss of 48900 or if it moves above 49446 and maintain for some time with a stop loss
of 49250.
2. Short
trade can be tried on the rise near or within the range of 49700 —49800 with
a stop loss of 49980. 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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