CNX-BANK NIFTY
Open---45560.90---High—45727.75---Low---45238.80---Close—45468.10
on 28.7.2023.
Support:-45416/45210/45179/44958/44939/44812/44787.10/ 44747.35/44592/44508.40/44498.60/44459.25/44360/44266/44220.10/44151.80/44095.25/43874.05/43706.15/43614.65/43598.20/43397.50/43390.30/43078.90/43044.07/43038.25/42986.45/42822.15/42740/42582.20.
Resistance:- 45525/45655.50/45658/45845/45905.85/45940/46268/46340/46369.50/47448/47575/47808/48229/48685/49040/49240/49525.
(Bold and underlined figures are most important)
After yesterday’s key reversal it opened with a down gap and thereafter
slightly recovered and moved above previous days closed but could not sustain
and plunged down but in last half hour of trade it recovered to some extent and
finally ended the day with a loss of 211.20 points. It
is already into correction mode, it has fallen below some of its short term
moving averages, it is making lower top & bottom on the line & bar
chart after a long time and now three out of five important technical
indicators are negative, therefore all together it is very concerning and
pointing that it can go down sharply from here in coming days and I believe the
process is on. It is important to mention here that if it fails to stage a
sharp recovery in next 3-4 trading
sessions and closes above some of its critical points as mentioned below and
sustain above it then the continuation of the up move will be in jeopardy and
it may keep drifting down and sustained break below 45238 & 45120(figure
can change) may drag it down fast. The short term technical chart setup and
parameters are weak now but it is still in the strong long term uptrend and it
is buying on decline market in general as of now. But in view of volatility,
key reversal, negative technical indicators and correction mode it is suggested
to defer buying on decline for some time till visible sign of correction
completion emerges because correction can get ugly also at times, so watch
out.
Moving down further from here its
good support points could be at 45407---45327---45331---45238---45120---44958---44912---44825---44787---44747—44695---44539----44151.80(figures
may change), these could be possible buying points also as it may bounce back from any of these points
and resume the up move again. It is into correction mode now and break below
each support point will weaken it further, sustained break below 45407—45331
& 45225 may trigger fresh fall, break below 45120 could be
highly concerning, there is a strong chance that it could bounce back from 44912
but break below it could be a bad sign, break below 44539 will get it
into deep and long corrective mode and finally it may lose upside steam for a
while if it fall below 44151.80 and sustain on the closing basis.
Moving up
from here it may face resistance at 45475--- 45570----45655.50---45697----45760---
45940---46187---46220---46268---46340---46364---46369.50---47448---47980
it may correct at any of these points and then may resume the up move again. Please
note that 45506(figure may change) is its pullback threshold point and
if it closes above it and sustains then the chances are that it could possibly
move up further to 45671—45804---45938---46103---46143, this rally can
fizzle out at any of these points or earlier, but if it closes above 46143
and sustains then it could possibly retest its all-time high of 46369.50
or may go beyond it also. It will get
out of corrective mode if it closes above 45940 and sustains and then it
is expected to pick up good up momentum again.
IMPORTANT
NOTE:-Long trade below 45570 & 45238 could be a risky bet for the day.
TRADING TIPS:--
1. For safe trader’s it is suggested to avoid long trade till it closes
above 45570 or correction completion sign emerges. However, aggressive
traders can also try long trade if it moves above 45591 and maintain for
some time with a stop loss of 45450 or can buy on decline near or within
the range of 5331 & 45238 but not below it with a stop loss of 45050.
It could be a risky trade but worth trying.
2. It is in
the strong uptrend therefore short trade in general could be a risky affair but
as it is into correction mode and other parameters are also weak, therefore
short trade can be attempted on the reasonable rise or on the price breakdown
for intraday corrective gains. Short trade can be tried on the rise near or
within the range of 45875---45940 with a stop loss of 46080 or
sell if it moves below 45238 with a stop loss of 45470 .It could
be a risky trade mind you but worth trying.
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 favourable 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.
