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CNX-BANK NIFTY
Open—49262--High—49529.35--Low—49123.60---Close—49231.05
on 2.5.2024.
Support: 49173.36/49057.80/48636.45/
48292.25/48203.45/48161.25.
Resistance:49262/49396.75/49446.69/49676/49732/49883/49974.75/50005/50296/50589.
It opened on a negative note and thereafter had both side moves during the day and finally ended the day with a loss of 165.70 points. It is into very short correction mode for its recent rise as it is below its threshold point of 49446.69, break below 49173.36 will deepen the correction, sustained break below 49057.80 will be an alert sign, sustained break below 48636.45 will be a warning sign, sustained break below 48292.25 & 48203 may derail the up momentum and it may trigger fresh fall and then it can witness accelerated down move. The bias is bullish as of now, but since it gotten into corrective mode it may correct further before resuming the up move again but if it moves above 49396.75(Figure may change) & 49446.69 and sustain on the closing basis then it may resume the up move immediately. .
The important technical indicators on the daily, weekly and monthly chart is giving mixed signal pointing that it may have both side moves in coming days/week/months with a slight downward bias. But please note that the moving average placement is good and the price action is also more or less has been consistently positive, therefore if these parameters remain good the up move may continue and eventually the indicators may also turn positive but as of now indicators weakness is still a concern. The long term trend is up therefore it is buying on decline market now but it is short correction also so be cautious. The volatility is still continuing which is not a good sign for a steady market and eventually it can drag it down in coming days/weeks & months, so be alert and watchful and ride the on-going rise with slight caution because it may give severe downside corrective jerk at times.
TRADING CALL: --
1. Long trade can be tried if it moves above 49262
and maintain for some time with a
stop loss of 49100 or if it moves above 49450 and maintain for
some time with a stop loss of 49230 or on the sharp decline near or
within the range of 48650---48300 with a stop loss of 48150. Please
note that trying long trade in a corrective mode could be a risky affair but it
can be tried at the critical support points for pullback gains.
2. It is in
the long term uptrend therefore short trade in general could be a highly risky
affair; but it is into short correction mode now, 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 49550 —49650 with a stop loss of
49750 or can sell below 49100 with a stop loss of 49280. It could
be a risky trade but can be tried 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.
