CNX-BANK NIFTY
Open---44465.90---High—44668---Low---44182.50---Close—44588.30
on 27.9.2023.
Support:-44547.80/44539/44498.60/44459.25/44279.40/44254/44207.25/44151.80/
43950/43862/43830.75/43706.15/43600.35/43519.55/43446/43345.95/43078.90/43038.25/42986.45/42582.20/41962
Resistance:44539/44547.80/44795/44949.60/45118.05/45238.80/45655.50/
45782.75/45816/45893.80/46310.40/46369.50/46761/47063/47123/47284/47427/47755/48081/48198/48446/49139.
(Bold and underlined figures are most important)
It opened with a down gap and went down further but recovered in the late
afternoon and finally ended the day with a meager loss of 35.90 points. It is already into deep
short term correction mode for its recent rise. It is below some of its short
& medium term moving averages on the daily and below some short term moving
averages on the weekly chart also, which is a weak sign and indicates that
further fall may be ahead with short relief rallies. Please note that for the
reasonable or good pullback up move it has to move above 44685(figure may
change) and sustain on the closing basis, else the down move may continue, but to get into strong up momentum track it
has to close above 45175---45816 & 45885(figures may change) and
sustain on the closing basis. However, if it manages to hold 44548.90 (figure
may change) on the closing basis then the hope of an up may be alive,
else it may slip down to it next strong support range of 44254---44151.80(it
did test this range today but bounced back) and break below this range
could be highly concerning. The short term technical setup has weakened,
furthermore on the daily chart all the five important indicators are negative
now therefore down move is likely to continue, few indicators on the weekly and
monthly chart are also showing weakness as of now. Please note that weak
indicators with weak price action are a deadly combination and it can pull it
down sharply and the price action has been weak since 18.9.2023 and it is still
weak. It is therefore suggested to keep an eye on the price action and if it starts
to make higher highs & low then the trend could reverse, else further
downside is open, so watch out the price action. It is into deep short
correction mode now but the long term trend is up.
Kindly note
that moving down from here the key support points could be 44548.90---44539---44254---44151.80(figure
may change) break below 44539
will push it into deep long term corrective mode but if it holds 44254 &
44151.80 on the closing basis then the hope of up move will still be alive ,but break below 44151.80 on
the closing basis may dampen the possibility of continuation of the up move and
it may slide down and then the next strong support range would be between 44032----43600----43446---43345.95
Break below 44032(figure will change every day) will threaten the
long term uptrend.
Moving up
from here it may face resistance at 44628---44658---44685---44704---44995—45011---45118---45259---45311---45507----45671---45725---45782.75---45816---45885---46310.40---46369.50(some
figure may change). Please note that it may correct at any of these points
and then may resume the up move again or rally may exhaust also.
IMPORTANT NOTE:
-- It is into short correction mode now, therefore it
is sell on the rise market now till it closes above 45816 and sustain, therefore
long trade could be risky thing till correction is on and it can get out of
corrective mode if it closes above 45814, but long trade can be tried intraday
at critical support points for pullback gains only. Long trade below 44539
could be a risky bet for the day.
TRADING TIPS:--
1. Safe traders should avoid long trade till correction completion sign
emerges or it closes above 44685 at least. But aggressive traders
can try long trade on decline if it holds 44548.90 levels for some time
with a stop loss of 44400 or on further decline near or within the range
of 44254—44151.80 with a stop loss of 44000.
2. It is
into the long term uptrend therefore short trade in general could be a risky
affair, but it is into deep short correction mode now, therefore short trade
can be attempted but with extreme caution and care 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 44850---44950 with a stop loss of 45130
or sell if it moves below 44539 with a stop loss of 44700.
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.
