2 2 2
CNX-BANK NIFTY
Open—49174.55--High—49252.65--Low—48784---Close—48895.30
on 6.5.2024.
Support: 48636.45/ 48292.25/48203.45/48161.25/47737.20.
Resistance:49057.80/49173.36/49262/49396.75/49446.69/49676/49732/49883/49974.75/50005/ 50296/50589.
It opened on a positive note and thereafter
had both side moves during the day and
finally ended the day with a meager loss of 28.25 points, after previous days fall it remained
flat to negative today, which is weak
sign. It is already into deep short correction mode for its recent rise as it is
below its threshold point of 49446.69 & 49173.36 and it is also
below its alert point of 49057.80. But the good thing is that it is
above its most critical & important range of 48636.45—48528----48398----48360----48292.25
& 48203, please note that it may
bounce back from this range and may resume the up move again, but sustained
break below 48636.45 will be a warning sign, sustained break below the
range of 48528---48398---48360 will weaken it further and sustained
break below 48292.25 & 48203 may derail the up momentum and may
trigger fresh fall and then it can witness accelerated down move. The long term
uptrend is on, but since it is into corrective mode it may correct further from
here before resuming the up move again. But please note that if it moves above 48970.05(figure
may change) and sustain on the closing basis then it will give a ray of
hope that there could be a meaningful pullback up move, else it may head down,
but to get into the strong up momentum track it has to move above the range of 49262----49396.75
& 49446.69 and sustain on the closing basis. .
The important technical indicators on the
daily, weekly and monthly chart is giving mixed signal pointing that it may
have both side moves in coming days/week/months with a slight downward bias. But
please note that the moving average placement is still good and the price
action is also more or less has been consistently positive, therefore if these
parameters remain good the up move may resume in a day or two and eventually all
the indicators may also turn positive but as of now indicators weakness is
still a concern and could drag it down further. The long term trend is up
therefore it is buying on decline market in general, but since it is into deep short
correction mode now, therefore short trade can also be attempted on the
reasonable rise or price breakdown for intraday gains, but be alert and
cautious in both side trades. The volatility is still continuing which is not a
good sign for a steady market and eventually it can drag it down in coming
days/weeks & months, so be alert and watchful and ride the on-going rise
with slight caution because it may give severe downside corrective jerk at times,
so be watchful.
TRADING CALL: --
1. Long trade can be tried on decline near or
within the range of 48720-----48650 with a stop loss of 48400. Please
note that trying long trade in a corrective mode could be a risky affair but it
can be tried at the critical support points for pullback gains.
2. Short
trade can be tried on the rise near or within the range of 49250 —49350 with
a stop loss of 49450. 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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