CNX-BANK NIFTY
Open—48245.55--High—48381.95--Low—47822.85--Close—48159 on
5.1.2024.
Support: 48081/48021/47998/47918/47856/47808/47575/47454/47420/47231/47123/46919.70/46886.90/46850/46484.45/46369.50/46310.40/45905.85/45893.80/45816/45782.75/45655.50/45238.80/45118.05/44949.90/44779.65/44710.55/.43600.35/44547.80/44498.60/44279.40/44151.80/43830.75/43796.75/43345.95/43230.95/43078.90/43038.25/42986.45
Resistance:48166.15/81/48166.15/48203.45/48220/48292.25/48478/ 48502/48574/48636.45/48722/48925/49024/49567.60/49696/49857/50324/50633.60/50850.
(Bold and underlined
figures are most important)
It opened on a positive note and had both side
moves during the day but finally ended the day with a loss of 36.85 points. It is important to mention here that for the
earlier gaps, the gap filling threat on the daily chart had faded out but it is
still looming on the weekly chart (gap point 44951.10), and there is a
fair chance that it may try to fill this gap in the week starting from 8.1.2024
else chance of filling the gap may recede for a while but eventually it
will fill the gap, which please note, so be alert, cautious and watchful.
The overall chart setup is good, but please note that its critical points are
48636.45---48292.25 & 48203.45 and to keep up the up momentum going in the
year 2024 it has to sustain above these points on the closing basis else it may
trigger correction. It is still below all the three critical points, it
is already into very short correction mode for its recent rise as it is below
its threshold point of 48231.30. Please note that break below 48133.94---47360.75
& 47095.12(figure may change) will push it into deep short, medium and
long term correction mode for its recent rise and break below 46369.50
could be an extreme alert point and then correction may further deepen and can
last longer It is in the long term uptrend as of now, but it is suggested to
defer buy on decline strategy for a while and watch how the on-going correction
culminates because it is still not out of woods therefore for the time being
sell on the rise strategy can also be
adopted till it gives visible sign of continuation of the up move. However as
long as it holds 47754(figure may change) on the closing basis a
meaningful pullback up move will be on, else correction may continue and deepen.
It is very important to mention here that
three out of five important technical indicators are still negative on the
daily chart and indicates that it could drag it down 46900 or lower in
coming days, furthermore one most important indicator on the weekly &
monthly chart is also negative, furthermore it is still into short corrective
mode all together this is concerning, but the other technical parameters such
chart setup, moving average placements and price action are still good, so if
these parameters remain good it could still continue the up move, but if these
parameters turn weak then the technical indicators weakness can play havoc and
can drag it down sharply.
I once again reiterate that till it holds 47754
(figure may change) on the closing basis pullback move may be on, else
correction may deepen, moving down its important support points could be at 48133.94---48059---47923---47754---47575---47481.35---47411.65---47324----47263---46919.70---46886.90---46507.15(figures
may change), please note that it can bounce back from any of these points
and may resume the up move again but break below 47481.35 may
trigger fresh fall and sustained break below 46919.70---46886.90 &
46507.15 may accelerate the fall.
Similarly moving up it may face strong
resistance at 48195---48203.45---48219.95---48292.25---48364----48405--48636.45---48717---49024---49568---49696(figure may change) and it can correct
at any of these points and then may resume the up move again or it may exhaust
the up move at any of these points also. But please note that if it moves above
48405 and sustain on the closing basis then it could retest its all-time
high of 48636.45 or may go beyond it also.
IMPORTANT NOTE: -- IT IS
STILL BELOW THE CRITICAL POINTS OF 48203.45----48292.25--- &48636.45, FURTHERMORE
IMPORTANT TECHNICAL INDICATORS ARE ALSO NEGATIVE, THEREFORE DANGER OF GOING
DOWN IS STILL THERE TILL IT MOVES ABOVE THE CRITICAL POINTS AND SUSTAIN OR
TECHNICAL INDICATORS IMPROVES. SO BE WATCHFUL.
TRADING TIPS:--
1. For safe traders long trade can be tried if
it moves above 48293 and maintain for some time with a stop loss of 48120
avoid buy on decline for the day. But
aggressive traders can also try long trade on sharp decline near or within the
range of 47900---47800 with a stop loss of 47650. Please note that
long trade in corrective mode could be a risky affair but can be tried at
critical support points.
2. It is in
the long term uptrend therefore short trade in general could be a highly risky
affair, but it is already into very short correction mode for its recent rise ,
therefore short trade can also be attempted on reasonable rise or on price
breakdown for intraday corrective gains but with extreme caution and alert.
Short trade can be tried on the rise near or within the range of 48550---48650
with a stop loss of 48750 or sell if it moves below 47700 with
a stop loss of 48000. It could be a risky trade but worth trying
for intraday corrective gains
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.
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