2 2 2
CNX-BANK NIFTY
Open—48895.15--High—49122.55--Low—48569.05---Close—48983.95
on 31.5.2024.
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 then had both side
moves during the day and finally ended the day with a gain of 301.60
points. It is into correction mode for its earlier and very recent rise also
which is a weak sign. But the good thing is that it is still holding its most
critical point of 48636.45 and if it
sustain above it on the closing basis then the up move can continue, else it
may head down again.
STRENGTH:-
1. It is in
the long term uptrend as of now. Break below 47212 will threaten the
long term uptrend.
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 above
its most critical points of 48203.45---48292.25 & 48636.45, please note that it must stay above all these
points to keep up the strong up momentum going in the year 2024.
4. It is above
almost it’s all short term moving averages on the daily and weekly chart and
the important average range is between 48581---48473---48292---28203(figures
will change every day), and if it
sustains above it on the closing basis then the up move may continue, else it
may move down.
5. It is
above its medium term moving averages.
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 49050.33---49173.36---49377---49397---49447---49676---49732---49883---49974.75,
if it moves above 48636.45 and sustain on the closing basis then
only it will get back on the up momentum track.
7. Moving
down the possible good bounce back point could be at 48855---48655---48636.45—48336---48292.25---48276---48203.45---48126---48016---47876---47737.20---47689.25----47621----47524----47258---47212----46983.25---46579.05(figure
may change), It is already into correction mode for its earlier and recent
rise also, break below 48636.45 will be an extreme alert point, break
below 48292.25 & 48203.45 will be a deep 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 47212 will
threaten the long term uptrend and finally sustained break below 46579.05
could be an ultimate 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 47212---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 points.
8. It is still
making higher top and bottom on the line chart.
9. Three out of five
important technical indicators are positive on the daily chart.
10. 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 today it slipped into correction mode
for its recent rise and it will get out of all the correction mode, if it moves
above 49050.33---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: -- Please
note that as long as it holds the range of 48636.45---48292.25 &48203.45
chances of continuation of the up move will be alive, else it may start to
drift down again. 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 weak as of now. Please be alert in the 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
48636.45 with a stop loss of 48480 or can buy on sharp decline near
or within the range of 48313—48203 with a stop loss of 48100.
2. Short
trade can be tried on the rise near or within the range of 49350 —49450 with
a stop loss of 49550 or can sell below 48480 with a stop loss of 48650.
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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