2 2 2
CNX-BANK NIFTY
Open—48965--High—49023.50--Low—48213.75---Close—48285.35
on 7.5.2024.
Support: 48203.45/48161.25/47737.20/47279.80.
Resistance:48292.25/48636.45/ 49057.80/49173.36/49262/49396.75/49446.69/49676/49732/49883/49974.75/50005/ 50296/50589.
It opened on a positive note but did not go
much higher after that and thereafter steadily moved down during the day and
finally ended the day with a loss of 609.95 points. 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
Furthermore today it decisively closed below its critical point of 48636.45
and also below its critical and
important support points of 48519----48410----48353----48292.25 , please note that the last critical support
exist at 48203 and sustained
break below it may derail the up momentum and can trigger fresh fall and
then it can witness accelerated down move and moving down the possible bounce
back point could be at 48184---47876----47737.20---47380----47258---46802
& 46579.05, but sustained break below 47258 may open the possibility
to drag it down to its most critical levels of 46802 & 46579.05,
break below 46802 will threaten the long term uptrend and sustain break
below 46579.05 may drag it down
to much lower levels and then the correction could be more painful time wise
and value wise both, which may please be noted. It is important to mention here
that it may gain some strength above the range of 48353---48410---48519,
but it may get into the up momentum track only if it moves above 48636.45
and sustain on the closing basis. The long term uptrend is still on, but since
it is into deep corrective mode it may correct further from here. But please
note that if it moves above 48636.45(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 down move may continue..
The important technical indicators on the
daily, weekly and monthly chart is giving mixed signal and pointing that it may
have both side moves in coming days/week/months with a downward bias.
Furthermore it has moved below some of its short term moving average and the
price action was also weak today, so all together it is indicating that further
fall may be ahead. Therefore please note that if these parameters do not improve
fast then the fall is likely to continue. I once again repeat that weekly &
Monthly indicators weakness is a major concern and could drag it down further
in coming weeks/months. The long term trend is still 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 corrective 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, which it
has been giving in the last few days including today, so be watchful.
NOTE:--MOVING DOWN THE STRONG BOUNCE BACK SUPPORT POINT COULD BE AT
47258 AND THEN IN THE RANGE OF 46802---46580.FOR SAFE TRADERS IT IS SUGGESTED
TO AVOID LONG TRADE TILL IT CLOSES ABOVE 48636.45 OR VISIBLE SIGN OF CORRECTION
COMPLETION EMERGES.
TRADING CALL: --
1. Long trade can be tried on decline near or
within the range of 48203-----48184 if it holds the range for some time
with a stop loss of 48070. 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 48550 —48650 with
a stop loss of 48750 or can sell if it remains below 48340 with a
stop loss of 48495 or can sell below 48184 with a stop loss of
48360. 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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