2
CNX-BANK NIFTY
Open---43018.70---High—43271.50---Low---42796.45---Close—43017.20
on 2.11.2023.
Support: 42986.45/42720/42582.20/42108/42105.40/41962/41829.60/41626/41569/41060/40819/39424.85/39300.
Resistance:43038.25/43078.90/ 43345.95/43446/43519.55/43600.35/43706.15/43830.75/43862/43950/44151.80/ 44182.50/44207.25/44254/44279.40/44390/44459.25/44498.60/44547.80/44539/44566.30/44795/44949.60/45118.05/45238.80/45655.50
45782.75/45816/45893.80/46310.40/46369.50/.
(Bold and underlined figures are most important)
It opened with an up gap and moved up further thereafter oscillated in a
range and finally ended the day with a gain of 316.25 points. Please note that despite today’s rise the overall technical
setup is still exhibiting weakness on the daily and weekly chart and the weakness has
trickled down to monthly chart also, therefore it is likely to move down
further in coming days. It is into deep short & medium term correction mode
for its earlier rise and went into short correction mode for its very recent
rise also and its long term uptrend is also severely threatened; therefore
further fall looks certain as of now in coming days. But the good point is it
has moved above its certain important points of 42720---42957---42986.45 and most importantly after quite some time it
has made higher bottom on the line & bar chart, which firms up the hope to
some extent that this up move can extend further. But to gain meaningful foothold and possibility
of continuation of the up move it has to move above these points 43038.25---43062---43112---43345.95
& 43356.85(figure may change) and sustain on the closing basis, else
down move will continue with in between relief rally and break below 42720---42957---42986.45 and finally below 42589.65
may trigger fall again. Please note that to have a smooth & steady up
movement it has to move above 43920 & 44500(figure may change)
and sustain on the closing basis and to get into the strong up momentum track
it has to close above 44711—44151.80---44180---45517----45656(figure may
change) and sustain on the closing basis. Please note that one
out of five important technical indicators
on the daily chart has turned positive today raising some hope that up
move can extend, but four out of five indicators on the weekly chart are
negative and most importantly weakness has trickled down to monthly chart also
in few indicators , therefore all together it is still highly concerning and
indicates that after possible extended up move it may witness deep fall in
coming days/ weeks/months. Furthermore the price action has also not been
consistently positive, which is also a big concern, but today it was positive.
Please note that for a smooth up movement steady positive
price action is needed, else the up move can abruptly end. It is therefore
suggested to keep an eye on the price action and see how it behaves in coming days. It is into
deep short & medium term correction mode now and long term uptrend is
potentially threatened. Therefore if it does not move above its key points as
mentioned above in a shortest possible time then downside looks inevitable in
coming days.
Kindly note that moving down from here it’s possible support points would
be at 42986.45---42957---42879---42720---42589.65---42559.50---42520---42473---42401---42386---42279---42252---42100---41984---41907---41829.60---41576---40948----40444---40164---39370(figure
may change) it may bounce back from any of these points, else fall may
continue.
Moving up
from here it may face resistance at 43038.25---43062---43112---43345.95---43715---44096---44151.80---44208---44711---45118---45318---45363----45469---45517---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:
-- The overall technical
setup is still weak on daily and weekly chart, but in light of few positive sign,
it may have an extended up move if it holds 42986.45--42957---42720 and finally 42589.65 levels, therefore long trade can be tried
on decline till it holds 42589.65, so it is buying on decline now till it
behaves otherwise. But please note that weekly indicators are still pointing
towards big fall in coming weeks and it could head down to 41000 or much lower
levels in coming weeks provided it moves below 42589.65 and finally below42105
sustains.
TRADING TIPS:--
1. For safe traders long trade can be tried if it moves above 43062 with
a stop loss of 42880 and avoid buy on decline for the day. However, aggressive
traders can also try long trade on decline near 42800 with a stop loss
of 42580. It could be a risky trade but worth trying.
2. It is already into deep short and medium term correction mode and long
term uptrend is also severely threatened, but short pullback up move is on today, even then
short trade can be attempted on reasonable rise for pullback gains but with extreme caution. Short trade can be tried on the rise near or
within the range of 43450---43550 with a stop loss of 43650.
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.
Thanks
Narendra Kumar Surana
Email—suranank@gmail.com
Mobile—8240951127/9831313654.
