CNX-BANK NIFTY
Open---44125---High—44151.30---Low---43938.70---Close—43993.25
on 22.8.2023.
Support: 43950/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962
Resistance: 44151.80/44279.40/44459.25/44498.60/44547.80/45118.05/45238.80/45655.50/45782.75/46310.10/46369.50.
(Bold and underlined figures are most important)
It opened on a positive note and
then moved in a range and finally ended the day with a meager loss of 8.75 points. It is below its very crucial and critical point of 44151.80(it
did touch it intraday today). The short term technical setup and technical indicators
are very weak on the daily chart and it is already into deep and long term
corrective mode and most importantly the weakness has trickled down on the weekly
chart also in some respect which is highly concerning, therefore it is likely
to go down further again in coming days for sure, however to give some hope of
moving up it has to close above 44151.80 and sustain, else it may keep
on moving down with in between short relief rallies. Moving down it will find
very strong support in the range of 43560----43345 it may bounce back
from this range or may hold this range for a while but as of now it seems that
it will break this range eventually this is what important technical indicators
are pointing as of now and break below the range will trigger fresh fall. Please
note that it may possibly resume the steady up move again if it moves above 44800
& 45118.05 (figure will change every day) and sustain on the
closing basis, but even if it closes above 44254(figure may change) and
sustain then there could be some hope of a pullback up move which may be kept
in mind. The short term bias is down but the long term uptrend is still intact
as of now. Please note that as of now the overall indication is that it is
likely head down and may seek much lower levels in coming days.
Moving down further from here its
good support points could be at 43959---43706.15---43600.35----43537---43507---43390---43345----43038.25---42986.45(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 or may keep
sliding down also. It is already into long and deep corrective mode, break
below each support point will weaken it
further, break below 43560(figure may change every day) will threaten
the long term uptrend, break below 43345 may trigger fresh fall and
finally sustained break below 43038.25 & 42986.45 may accelerate the
fall.
Similarly moving
up from here it may face resistance at 44090---44151.80---44254----44547.80---44658---44760---44815---44985---45118.05---45311(figure
may change) it may correct at any of these points and then may resume the up move again
or rally can fizzle out also. Please note that to keep the up move alive at
this point of time it has to move above 44151.80 and sustain on the closing,
furthermore 44254(figure may change) is its pullback threshold point and
if it closes above it and sustain then there may be some hope that it could
give a relief up rally, else down move may continue. It may resume the steady
up move again only if it closes above 44800 & 45118.05(figure
will change every day) and sustain.
IMPORTANT NOTE:-Long trade below 43840
could be a risky bet for the day. Please note that as of now technical
Indicators are pointing towards moderate to sharp fall in coming days/weeks and
as envisaged earlier it already hit 43600 level during the last week and now break
below 43345 can drag it down to 42700 level or may be much lower. Since it is
in correction mode, hence it is sell on the rise market for now, therefore it
is suggested to avoid long trade for the time being, but can be tried at
critical support points for pullback gains with strict stop losses.
TRADING TIPS:--
1. For safe traders it is suggested to avoid long trade till correction
completion sign emerges or if it closes above 45118.05 or at least above
44254(pullback threshold point) and sustain. However, aggressive traders can
try long trade on decline near or within the range of 43560---43345 but
not below it with a stop loss of 43250 or if it moves above 44065
and maintain for some time with a stop loss of 43930. Please note that
long trade could be a risky bet in correction mode but worth trying at critical
support range for pullback gains.
2. It is still in the long term uptrend therefore short trade in general
could be a risky affair but as it is into deep and long corrective mode therefore it is sell on the rise market now, so
short trade should 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 44220---44250 with a stop loss of 44340 or
sell below 43840 with a stop loss of 44070.
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.
