A TECHNICAL UPDATE ON CNX-BANK NIFTY—28.6.2024

 

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CNX-BANK NIFTY

Open—52980.30--High—53180.75--Low—52639---Close—52811.30 on 27.6.2024.

Support:52508/52218/51969/51823/51470/51133.20/50889.65/50467.77/50153.81/50122.13/49974.75/49688.85/49202/49057.40/48636.45/48381.95/48313.60/48292.25/48203.45.                           

Resistance: 52966/53064/53180.75/53281/54257/54604/54815.

OVERALL VIEW: --

It opened on a positive note and thereafter had both side moves during the day and in the process it hit a new all-time high of 53180.75 but finally ended the day with a loss of 59.20 points. It is exhibiting extraordinary strength but the vertical rise and volatility is a concern and it could prove to be a dampener in the coming days, which please keep in mind. The up move is likely to continue provided it holds its first key range of 52698.87----52319.28---52032.10 & 51957 (figures may change) on the closing basis, break below 52698.87 will push it into very short correction mode for its recent rise, break below 52319.28 & 52032.10 will weaken it further and sustained break below 51957 will be a warning sign and may trigger fresh fall. However even if it breaks the above mentioned points, but moving down as long as it holds the range of 51718.14----51687---51512----51504.47----51119----51115.34----50780---50411(figures may change) the chance of the up move will be alive but break below this range could be a deep warning sign for a big down move to start and finally sustained break below the range of 48636.45---48292.25 &48203.45 will trigger fresh fall and that could be moderate to sharp in the intensity. It is important to mention here that despite the recent rise one important technical indicators on the daily, weekly and monthly chart is still negative, which indicates that it may fall in coming days/weeks, but please note that as long as price action remains good there is no major threat for it to move down and the price action has been more or less consistently good in the last few day and it was positive today. But in light of vertical rise, 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 a buy on decline market now, but short trade can also be attempted on the rise at appropriate points for intraday gains.

NOTE: - IF IT HOLDS 52698.87 & 51957 LEVELS ON THE CLOSING BASIS THEN THE UP MOVE MAY CONTINUE.

 STRENGTH:-

1. It is in 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 52043----51657----51512----51119---50780---50411(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 is making higher top & bottom on the line & bar chart.

8. It is out of all corrective modes now. The important correction threshold points are 52698.87----52319.28----52032.10---51718.14---51504.47---51115.34(figures may change). Please note that break below any of these points could be concerning.

9. The price action was positive today.

WEAKNESS:-

1. One important technical indicator is weak on the daily/weekly and monthly chart 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 52698---52676 with a stop loss of 52500 or can try long trade if it moves above 52947 and maintain for some time with a stop loss of 52750,

2. Short trade can be tried on the rise near or within the range of 53250---53350 with a stop loss of 53500 or can sell below 52500 with a stop loss of 52720. 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.