2 2 2
CNX-BANK NIFTY
Open—47842.95--High—48188.65--Low—47758.80---Close—48115.65
on 17.5.2024.
Support:47737.20/47313.35/47279.80/46919.70/46579.05/46529.05/45828.80.
Resistance:48161.25/48203.45/48292.25/48636.45/ 49057.80/49173.36/49262/49396.75/49446.69/49676/49732/49883/49974.75.
It opened on a negative note and thereafter
had both side moves during the day and finally ended the day with a gain of 138.60 points. It
is still into correction mode for its earlier rise and below some of its most
critical points as mentioned below (see weakness point no-2), but it
seems that it is firming up and in worst case scenario as long as it holds its
correction threshold point of 47904.18(figure may change) for its recent
rise and its pullback threshold point of 47689.25(figure may change) chances
of continuation of the up move will be
alive, else it may head down again.
STRENGTH:-
1. It is in
the long term uptrend as of now. But break below 46952 will threaten the
uptrend.
2. The short
range for it now is between 49974.75---47737.20 and the long range is
between 49974.75----46913----46579.05.
3. It is
above its pullback threshold point of 47689.25(figure may change) and if
it sustains above it on the closing basis then the rally can extend further and
the possible upside target or resistance points could be at 48126---48203---48292---48479---48636.45—48832---49269----49377.
4. Moving
down the possible good bounce back point could be at 47904.18---47737.20---47689.25----47380---47258---46952---46579.05(figure
may change), break below 47904.18 will push it into correction mode
its very recent rise, break below 47689.25 may end the on- going
up move, sustained break below 46952
will threaten the long term uptrend and finally sustained break below
46579.05 could be a warning sign and can drag it down to devastatingly lower
levels in coming days and may make the on-going correction more painful time
wise and value wise both, which may please be noted. So 46932 &46579.05 is
a very strong and may be the last bounce back support points as of now or make
or break point or benchmark point.
5. It has
made short higher top and bottom on the line chart now.
6. The price
action was positive today.
WEAKNESS:-
1. It is into
deep correction mode now for its earlier rise and it will get out of it, if it
moves above 49173.36 & 49446.69 and sustain on the closing basis.
2. It is below
its most critical points of 48203.45---48292.25 &48636.45, please
note that it is must to stay above these point to keep up the up momentum going
in the year 2024.It will catch up momentum above 48636.45 only.
3. It is
below some of its short term moving
averages on the daily chart and the
important range of averages is between 48250---48157---48058(figures will
change every day), sustained close above this range may provide good
strength and an impetus to move up.
4. It is
below some of its medium term moving averages on the daily chart.
5. It has broken its earlier major bottom on the
line and bar chart.
6. Technical
indicators are weak on the daily/weekly and monthly charts and pointing that it
could head down to much lower levels in coming days/weeks and months.
7. Volatility
can be seen in the market quite often, which is not a good sign for a steady
market condition and it can eventually drag it down may be drastically in the coming
days/weeks and months. So be watchful.
OVERALL VIEW: -- It is still into the correction mode
for its
earlier gains but the pullback mode is also on and the technical setup has also
improved a bit but with a weak tinge. Please note that if it manages to hold its
critical point of 47904.18 &47689.25 on the closing basis then the
up move can extend with intermittent correction. It is important to mention here
that it will get into strong up momentum track once it moves above 48203.45---48292.25
&48636.45 and sustains. Since it is in correction mode and the pullback
mode is also on therefore both side trades can be attempted depending on the
price action. But please note that both side trade amid volatility and in a
corrective market could be a risky affair, so be alert and watchful in your
trades. The long term trend is still up, but the short term bias is still negative
as of now.
TRADING CALL: --
1. Long trade can be tried on decline near
or within the range of 47900----47800 with a stop loss of 47650
or if it moves above 48225 and maintain for some time with a stop loss
of 48000.
2. Short
trade can be tried on the rise near or within the range of 48450 —48550 with
a stop loss of 48650 or can sell below 47650 with a stop loss of 47820.
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.
