CNX-BANK NIFTY
Open-40972.30-High-41071.15-Low-40802.65-Close-40999.15
on 5.4.2023.
Support:- 40839/40819.15/40288.90/40269/40201.60/39868.85/39600.25/ 39513/39491/39419.80/39335/39273.75/39197.20/39258.25/38765.85/38437.95/38426.65/37950---943/37581.05/37386.35.
Resistance: 41095.10/41157.90/41318.60/41569.45/41643.90/41671.20/41677.65/41729/41791.95/41829.60/41840.15/41877/41979.10/42015.65/42078.90/42202.55/42555.15/42622.75/42716.80/42740/42880/42948/42986.45/43038.25/43081/43339.15/43498.05/43515.05/43578.40/43614.65/43853.40/44151.80.
(Bold and
underlined figures are most important)
It has been moving up for the last six days exhibiting strength and ended
the day near the high of the day with a gain of 186.10 points. But
continuous rise also makes it vulnerable for short correction also, so be
watchful.
It is still into deep corrective mode, but the short term technical setup
has improved, it is making higher top and higher bottom on the line and bar
chart, it is above its short and some medium term moving averages on the daily
chart, it is well above its major
pullback trigger point of 39921, it is within its long term moving
averages range which is placed between 41302----39634(figures will change
every day) for the day and it is near the upper band of the range and last
but not the least all the four important technical indicators are positive now,
therefore all together it is showing strength and indicate that the up move is
likely to extend further with in between short corrections provided it holds 40608.65
and then 39921 levels on the closing basis, else it may start to
move down again. It is important to mention here that it will gain good strength only if it moves above its long term moving
average range and sustain on the closing, it seems that it may cross this range
in coming days if it manages to hold key points. So watch out.
Moving up its
critical resistance points could be at 41060---41352---41383---41568---41671---41979.10---42036---42556.
The on-going up move is a pullback rally and it may exhaust at any of these
points or earlier also, which please note. But if it moves above 41060 and sustain on the closing basis
then it could possibly move up to 41580---41670,
it may pick good up momentum if it moves above 41302 & 41383 and sustain on the closing basis, else this rally may end here. Similarly moving down its critical support
points could be at 40950---40695.80---40608.65---40201---40142---39970---39921---39781---39600---39419.80---39335---39273.75---38983---38739---38613---37386.Please
note that sustained break below 40608.65
on the closing basis will be an alert sign for the up move, sustained break
below 40491(figure may change) will
push it into short corrective mode for the recent rise sustained break below 39921 on the closing basis will weaken the pullback rally, break
below 39634(figure will change every
day) will potentially weaken it and break below 39335 & 39273 on the closing basis may end the hope of the continuation of the pullback up move and sustained break below 38739 & 38613 will deepen the down
move and can drag it down to 37386,which
may be kept in mind.
In view of the
above observation the deep down correction is on but pullback rally is also on.
Since it is in deep correction mode therefore it is a sell on the rise market
or sell on the price breakdown in general but be cautious in short trade as
major pullback rally is on and for the safe traders it is suggested to avoid
long trade till a visible sign of correction completion emerges. However
aggressive traders can try long trade at important and critical support points
for the pullback gains. But be alert and extremely cautious in the long trade
initiated for pullback gains because it is in deep corrective mode and you are
well aware that pullback rallies are treacherous in nature and can end abruptly
trapping the traders unaware. The long term bias is still bearish but the short
term technical setup indicates that it may rally for some time provided it
holds the key points as mentioned above.
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.
m for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Email—suranank@gmail.com
Mobile—8240951127/9831313654.
