A TECHNICAL UPDATE ON CNX-BANK NIFTY—26.2.2024

 

 

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 CNX-BANK NIFTY

Open—47060.70--High—47245.35--Low—46723.15---Close—46811.75 on 23.2.2024.

Support:46580/46507.15/46426.85/46369.50/46310.10/46181.20/45655.50/ 45527/45430.70/45238.80/45071.20/44949.90/44710.55//44547.80/44429/44279.40/44182.50/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.

Resistance:46886.90/46892.35/ 47010.80/47259.89/47363.40/47415.85/47481.35/47588/48166.15/48203.45/48219.95/48292.25/48305.40/48381.95 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 had both side moves during the day and finally ended the day with a loss of 108.05 points. It continued the down-slide for the 3rd day in a row but it is still above its recent important & key points of 46719.23 & 46670.88 which is a good sign. It is needless to mention here that it has been exhibiting volatility for a long time now and having a see-saw movement quite often as it did today also. Therefore I am constantly reminding that the volatility is a huge concern and is not a good sign for a steady market and may eventually drag it down sharply in coming days/weeks & months.

The chart setup is improving but it is not yet out of woods as it is already into deep correction mode for its earlier gains. It is important to mention here that its critical & important points are 48203.45---48292.25 & 48636.45 and to keep up the up momentum going on in the year 2024 it has to sustain above these points on the closing basis. It is way below these points but it had been inching up towards it before the on-going down move, hopefully it may resume the up move again and moving up from here its broad resistance points could be at 47030---47096---47361---47448---47644---47795(figures may change) and for in between and other resistance points please refer the resistance table at top. Please note that it may correct at any of these points and then may resume the up move again or may exhaust the up rally for a while but if it moves 47361 and sustain then it will get out of all corrective modes and finally if it moves above 47795 and sustain on the closing basis then it could retest its all-time high of 48636.45 or may go beyond it also.

 Similarly moving down its broad support points could be at 46719.23---46670.88---46532---46441---46304----46011---45999----45767---45677----45421.96---45278---45180---45016---(Figure may change) and for in between and other support points please refer the support table at top. Please note that it may bounce back from any of these points and resume the up move, but sustained break below 46719.23 & 46670.88 will push it into short & deep short correction mode for its very recent rise, sustained break below the range of 46304—46011 may accelerate the fall  and then break below each point will weaken it further.    

It is important to mention here that all the five important technical indicators are positive now on the daily chart indicating that the on-going rise may continue. But four out of five indicators on the weekly & one on the monthly chart is negative pointing that it could head down in coming weeks/months. Although it continued the down move for the 3rd day in a row but please note that the other important parameters such as moving average placement is still o.k., and the price action has also been consistently good, therefore if these parameter remains good and improves and it holds its key points as mentioned above then the up move can continue and last but not the least in worst case scenario as long as it holds 45767 & 45421.96 (figure may change) on the closing basis chances of up move will  be alive. 

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 46725----46670 with a stop loss of 46530 or can be tried if it moves above 46940 and maintain for some time with a stop loss of 46780. But aggressive traders can also try long trade on sharp decline near 45770 with a stop loss of 45600.

2. It is into long term uptrend but in the deep long corrective mode for earlier rise, but pullback mode is also on, even than 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 47250---47350 with a stop loss of 47500. 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 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. 

Thanks 

Narendra Kumar Surana

Email—suranank@gmail.com

Mobile—8240951127/9831313654.

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A TECHNICAL UPDATE ON CNX-NIFTY—23.2.2024

 

CNX-NIFTY

Open-22081.55--High—22252.50—Low—21875.25--Close-22217.45 on 22.2.2024.

Support: 22126.80/ 22124.15/22079.67/21926.76/21834.35/21813.05/21801.45/  21763.95/21750.25/21731.40/21727.75/ 21593/21500.35/ 21448.65/21285.55/ 21137.20/20976.80/20769.50/20291.55/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.

Resistance:  22249.40/22252.50/22371/22453/22514/22590/22618/22782/22864/23082/23111/23124/23587.

 (Bold and underlined figures are most important)

It opened on a positive note and had wild swings on both the sides and hit a new all-time high of 22252.50 and finally ended the day with a gain of 162.40 points. Today it filled the gap also it created on 16.2.2024(gap point 21953.85). It is needless to mention here that it has been exhibiting volatility for a long time now and having a see-saw movement quite often as it did today also. Therefore I am constantly reminding that the volatility is a huge concern and is not a good sign for a steady market and may eventually drag it down sharply in coming days/weeks & months. It is important to mention here that the gap filling threat for earlier gap on the daily & weekly chart has faded out but please note that eventually it will fill the gap someday(weekly gap of 20291.55 is yet to be filled), which please note.

It sharply bounced back today above the Inverse Head & shoulder pattern(bullish pattern) neckline which is placed at 22126.80 and if it sustains above it on the closing basis then the maximum upside target could be 23117 with in between resistance points at 23376---23457---23623---23787---22870.

The chart setup is good now and if it manages to hold the recent important & key points of 22126.80(neckline)----22082.04(short correction threshold point) & 21989.29(deep short correction threshold point) on the closing basis then it is likely to continue the move up. Moving up from here its target or resistance points could be at 22252.50---23376---23457---23623---23787---22870.

 Similarly moving down the other support points could be at 22126.80---22124.15----22089.04---22007.48---21989.29---21933---21891---21838---21801.45---21748---21731.40----21727.75----21701----21692----21675---21593---21500----21448.65---21370.12----21285.55----21137.20(figures may change), sustained break below 22126.80 could be highly concerning and sustained break below the range of 22082.04 & 21989.29  will push it into short & deep short term correction mode for its very recent rise, break below the range of 21933---21801.45 may trigger fresh fall and then break below each point will weaken it further and sustained break below 21137.20 may accelerate the fall.

It is important to mention here that four out of five important technical indicators are positive and one most important indicator is negative on the daily chart giving mixed signals and as of now indicates that it may swing either way and may finally head down in the coming days. Furthermore one most important indicator on the weekly & monthly chart is also negative pointing that it could head down in coming weeks/months. But please note that the other important parameters such as moving average placement and price action has been good, therefore if these parameter remains good and it holds the recent key points as mentioned above then the up move will continue and last but not the least in worst case scenario as long as it holds 21671(figure may change) on the closing basis chances of up move will  be alive.

TRADING TIPS:--

1. Long trade can be tried on decline near or within the range of 22126---22085 with a stop loss of 22000 or if it moves above 22253 and maintain for some time with a stop loss of 22180.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair; however, 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 22450--- 22475 with a stop loss of 22550 or sell below 22000 with a stop loss of 22085. 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 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. 

Thanks 

Narendra Kumar Surana

Mobile—8240951127/9831313654.

Email--- suranank@gmail.com