2 2 2 2
CNX-BANK NIFTY
Open—48671.20--High—48882.65-Low—48477.55---Close—48564.55
on 12.4.2024.
Support: 48381.95/48305.40/48292.25/48219.95/48203.45/48166.15/48161.25/47795/47588/47481.35/47363.40/47259.85/47191.65/47010.80/46919.70/46892.35/46886.90/46529.05/46507.15/46426.85/46369.50/46310.10/46181.20/45905.85/45828.80/45661.75/45655.50/
45430.70/44949.90/44633.85/44612/44547.80/44429/43830.75/43796.75/43600.35/43345.95/43230.95/42582.20/42105.40.
Resistance: 48636.45/48722/48745/48796/48938/49052/49328/49603/49688/49716/49781/49911/50038/50244/50494/50740.
(Bold and underlined
figures are most important)
It opened on a huge negative note and thereafter
had both side moves during the day and finally ended the day with a loss of 422.05 points. As
envisaged it corrected today and it seems to be a very normal correction after 9
days of rise, but how it will culminate eventually has to be seen in over the
next 2-3 trading sessions, so watch out. The stipulated time for filling
the gap it created on 4.4.2024 has elapsed therefore chance of filling
the gap immediately has receded, but it will definitely fill the gap some day(gap
point is 47676), so be alert. The volatility is continuing which is not a
good sign for a steady market and eventually it can drag it down in coming
days/weeks & months and today’s fall was may be just a trailer, however if
other parameters supports, then it may continue to move upside with in between
correction, but the fear of moving down may haunt at times because of the volatility,
which please keep in mind.
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 must
sustain above these points on the closing basis. Please note that after a
long time it closed above all these points on 9.4.2024 but just after 2
days, today it fell below 48636.45, but it is still above its other
two key points and as long as it stays above 48292.25 & 48203.45 chances
of the continuation of the up move will be alive but it will pick up strong up
momentum only if it moves above 48636.45 and sustain on the closing
basis. But sustained break below these points will weaken the up momentum and
it may head down.
Moving up from here its broad resistance
points could be at 48636.45-----48637.89----48745-48796------48938----49057.40----49328----49603----49688---49716(figures
may change) and for in between and other resistance points please
refer the resistance table at the 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.
Similarly moving down further from here the
broad support points could be at 48381.95--48295.45----48292.25----48203.45----47965.10----47816----47795-----47726---47635---47481.35----47416.73---47393----47279.80---47010.80---46886.90----46529.05---46507.15---46398---46369.50---46310.40----45828.80---45661.75-----44633.85----44429(Figure may change) and for in between and other support points
please refer the support table at the top. Please note that it may bounce back
from any of these points. But today it slipped into short correction mode for
its recent rise as it closed well below its critical and threshold points of 48636.45 & 48637.89, sustained break below
the range of 48292.25-------48203.45 may dampen or end the up move for a
while, break below 47965.10 will deepen the correction, sustained break
below the range of 47816---47726---47416.73---47393 may trigger fresh fall, thereafter break below each point will weaken it
further and break below 46398 will threaten the long term uptrend, which
may please be noted.
It is important to mention here that all the
five important technical indicators are positive now on the daily chart, which
is a positive sign and indicates further upside may be ahead. But one important
indicators on the weekly and two indicators on the monthly chart is negative
pointing that it could head down in coming weeks/months, but weekly indicators
have improved from the previous week which is good sign, but ,volatility &
some weak weekly & monthly indicator is still a concern. However, on the
other parameters it still looks very good such as moving average placement,
making higher top & bottom and price action has been consistently good and
positive, but today it was weak, therefore if the other parameters remain good
the up move is likely to continue with in between correction. But I once again
repeat that some weekly & monthly indicators speak otherwise at this point
of time, so ride the on-going rise with extreme caution and alert. It is in the
long-term uptrend; but gotten into short correction mode today, therefore both
side trades can be tried depending on price pattern.
TRADING TIPS: --
1. Long trade can be tried on decline near or within the range of 48293----48200
with a stop loss of 48100 or if it moves above 48666 and
maintain for some time with a stop loss of 48460.
2. It is in
the long term uptrend therefore short trade in general could be a highly risky
affair; but it has slipped into short correction today, 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 48800—48880 with a stop loss of
49100 or sell below 48420 with a stop loss of 48570. 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.
2
