CNX-NIFTY
Open-21935.20--High—22060.55—Low—21860.65--Close-21982.80
on 29.2.2024.
Support: 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: 22079.67/ 22124.15/ 22126.80/ 22249.40/22252.50/22297.50/22371/22453/22514/22590/22618/22782/22864/23082/23111/23124/23587.
(Bold
and underlined figures are most important)
It opened on a negative
note and had both side moves during the day and finally ended the day with a small
gain of 31.65 points. 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, which is a concern and it
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 is well below the Inverse Head & shoulder pattern (bullish
pattern) neckline which is placed at 22126.80, please note that it had been
giving whip saw movement around this point in the last few days and finally it
is below it, which indicated potential weakness, furthermore it is into short
& deep short term correction mode for its recent rise as it is below its
threshold point of 22116.47 & 22023.67(figure may change). Please note that
if it does not bounce back above all these points in a shortest possible time
and sustain on the closing basis then it may be heading for sharp fall in
coming days.
Moving down from here the important support
points could be at 21959---21914-----21823---21801.45---21748---21731.40----21727.75----21711----21692----21683---21593---21500----21448.65---21370.12----21285.55----21137.20(figures
may change), it may bounce back from any
of these points and may resume the up move again, but sustained break below the
range of 21801.45----21727.75 on the closing basis will trigger fresh fall and then break below each point
will weaken it further and finally sustained break below 21137.20 may
accelerate the fall.
Similarly moving up
important resistance points could be at 22007.48---22023.67----22116.47---22126.80---22252.50---22297.50---22376---22457---22623---22787---22870---23117.
Please note that
sustained close above the range of 22023.67----22126.80 may put it back
on the up move track.
It is important to mention here that all the five important technical indicators have turned negative now on the daily chart giving clear indication that it may continue to head down from here in coming days. One most important indicator on the weekly & monthly chart is also negative and pointing that it could head down in coming weeks/months. Furthermore it is below some of its short term moving averages on the daily chart, made lower top & bottom on the line chart and the price action is also weak. Therefore all together things are very concerning and pointing that if it fails to stage a strong bounce back in a day or two and move above its critical range as mentioned above then the down move may continue. However if it holds the level of 21963.75(figure may change) on the closing basis then the up move may extend and in worst case scenario as long as it holds 21671(figure may change) on the closing basis chances of up move will be alive. As of now the undertone seems weak and it is sell on the rise market now.
TRADING TIPS:--
1. Safe traders should avoid long trade till it
closes above 21126.80. However, aggressive traders can try long trade if
it holds 21963 for some time with a stop loss of 21890 or can try
long trade on decline near or within the range of 21800---21727 for some
time with a stop loss of 22660. . Please note that long trade
in a corrective mode could be a risky affair, but can be tried in strong
support range or point 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 correction mode
, therefore 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 22140--- 22160
with a stop loss of 22210 or sell below 21915 with a stop
loss of 22030. 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
