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