A TECHNICAL UPDATE ON CNX-BANK NIFTY—20.6.2024

 

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CNX-BANK NIFTY

Open—50607.90--High—51957--Low—50441.75---Close—51398.05 on 19.6.2024.

Support:51133.20/50889.65/50467.77/50153.81/50122.13/49974.75/49688.85/49202/49057.40/48636.45/48381.95/48313.60/48292.25/48203.45/47435.25/47340.35/46983.25/46579.05/45828.80/45661.75/44633.55/44429.                           

Resistance: 51470/51823/51969/52218/52508/52966/53064/54257.

OVERALL VIEW: --

It opened on a positive note and thereafter had both side moves but most of the time steadily moved up and hit a new all-time high of 51957 and finally ended the day with a robust gain of 957.15 points. As it sustained above its key point of 50122.13 therefore as expected hit a new high. It is exhibiting good strength but the volatility could be a dampener in coming days, which please keep in mind. It is out of all corrective mode today, therefore the up move is likely to continue provided it holds its first key range of 51384.33---51133.20 & 51097.77 on the closing basis, break below 51133.20 will be an alert sign. However even if it moves down but as long as it holds the range of 50199---50026---49921---49714---49512---49362(figures will change every day) the chance of the up move will be alive but break below this range could be a warning sign for down move to start and finally sustained break below the range of 48636.45---48292.25 &48203.45 will trigger fresh fall and it could be moderate to sharp in the intensity. It is important to mention here that despite the recent rise some important technical indicators on the daily, weekly and monthly chart are still negative, which indicates that it may fall in coming days/weeks, but as long as price action remains good there is no major threat for it to move down and the price action has been good but in light of some weak indicators and volatility, it is suggested to trade the market with extreme caution and alert. Since it is out of all corrective modes it is buy on decline market now, but short trade can also be attempted on the rise at appropriate points for intraday gains.

NOTE: - IF IT SUSTAINS ABOVE 51133.20 ON THE CLOSING BASIS THEN THE UP MOVE IS LIKELY TO CONTINUE. BREAK BELOW IT COULD BE AN ALERT OR WARNING SIGN.

 STRENGTH:-

1. It is in the long term uptrend; but break below 47665(figure will change every day) will threaten the long term uptrend.

2. It is well 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.

3. It is in the new zone.

4. It is above all its short, medium and long term moving averages on the daily and weekly chart, and the important range for now is between 50199---50026---49921---49714---49512---49362(figure will change every day), sustained break below this range can trigger down move again.

5. Four out of six important technical indicators are positive on the daily chart.

6. It has made higher top & bottom on the line & bar chart.

7. The price action was positive today.

8. It is out of all corrective modes now. The important correction threshold points are 51384.33---51133.20----51097.77---50783---50570----50180.39(figures may change).

WEAKNESS:-

1. Some important technical indicators are weak on the daily/weekly and monthly charts and pointing that it could head down to lower levels in coming days/weeks and months.

2. 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. .

TRADING CALL: --                                                                   

1. Long trade can be tried on decline near or within the range of 51135---51030 with a stop loss of 50850 for pullback gains, else avoid trade for the day.

2. Short trade can be tried on the rise near or within the range of 52000---52150 with a stop loss of 52300 or can sell below 50850 with a stop loss of 51040. 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.