CNX-BANK NIFTY
Open—45891.20--High—45932.15--Low—45527---Close—45690.80on
6.2.2024.
Support: 45655.50/45430.20/45071.20/44710.55/44949.90/44547.80/44429/44279.40/44151.80/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.
Resistance: 46310.10/46369.50/46580.30/46919.70/47010.80/47481.35/47588/48166.15/48203.45/48219.95/48292.25/48305.40/48381.95 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 went up
little further and then steadily slipped down and finally ended the day with a
loss of 134.75 points. Please note that it is exhibiting huge
volatility in fact it is having a see-saw movement quite often which is not a
good sign for a steady and smooth movement and may eventually drag it down
lower.
It is important to mention here that its critical & important points are 48203.45---48292.25
& 48636.45and 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 head down. It is way below
all the three critical points, it is well below all the important correction threshold points for
its recent months rise and most critical points
48231.30---48133.94---47999.87---47447.93---47387.89---47360.75---47095.12----46311----46270.95(figures
may change), which is a hugely negative sign and indicates further fall may
be ahead. Please note that break below 44746.91(figure
may change) will push it into deep medium term correction mode for its
earlier rise. It is already in the long term correction mode now for its recent
months rise, furthermore it is time and again testing its long term moving
average upper band ,which is placed at 45599.89(figure will change every
day) for the day, in fact it breached this level intraday today but managed
to close above it, but this behavior is concerning and sustained break below
it could threaten the long term uptrend and sustained break below the lower band of the long term
moving average which is placed at 44403(figure will change every day)
for the day may jeopardize the uptrend, which please keep in mind. It is
important to mention here that its short and long pullback threshold points are
at 44937 & 45421.96(figure may change) and it is well above both the
pullback threshold points, therefore as long as it hold these points on the
closing basis the hope of continuation of the up move will be alive, else it
may head down.
It is important to mention here that three out
of five important technical indicators are negative now on the daily chart and giving
mixed signal that it may drag it down in the coming days or can have wild movements
on the either side, furthermore three most important indicators on the weekly
& one on the monthly chart are also negative and it is into long term
corrective mode. The chart setup is still weak, it is still below few of its
short term moving averages on the daily and weekly chart, below some medium
term moving averages also and most important testing long term average every
now and then, and therefore all together it still indicates down move may
happen. But as long as it holds its long term moving average upper band of 45599.89(figure
will change every day) and pullback threshold point of 45421.96(figure
may change) the hope of continuation of the up move will be alive. In view
of the above observation long trade can be tried on decline till it holds these
points on the closing basis.
Moving down from here its important support
points could be at 45661----45505---45421.96----45370---45343.83---45251---45010.35---44949.50---44921----44746.91---44607----44506---44404----44312---44279.40---43830.25---43796.75---43600.35(figures
may change), please note that it can bounce back from any of these points
and may resume the up move again, else may keep moving down.
Similarly moving up it may face strong
resistance at 45759----45910-----45951.35---46072----46150----46367---46533----46825---47029----47391---47530----47644----47795---48203.45---48219.95---48231.30----48252.80---48292.25---48305.40---48381.95----48636.45(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 and may head down.
IMPORTANT NOTE: -- PLEASE
NOTE THAT AS LONG AS IT HOLDS 45599.89(FIGURE WILL CHANGE EVERY DAY) &45421.96
ON THE CLOSING BASIS CHANCES OF UP MOVE WILL BE ALIVE BUT BREAK BELOW THESE
POINTS WILL TRIGGER FRESH FALL.
TRADING TIPS:--
1. Long trade can be tried on decline near or
within the range of 45600---45450 with a stop loss of 45300 . Please note that long trade in corrective
mode could be a risky affair but can be tried at extreme critical support
points with strict stop loss for pullback gains.
2. It is into
long term uptrend but in the long deep corrective mode but pullback up move is
also on, but even then short trade can 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 46000---46100
with a stop loss of 46200 or sell below 45300 with a stop
loss of 45450. 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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