A TECHNICAL UPDATE ON CNX-NIFTY—6.2.2024

 

CNX-NIFTY

Open-21921.05--High—21964.30—Low—21726.95--Close-21771.70 on 5.2.2024.

Support: 21763.95/21750.25/21731.40/21727.75/21676.90/21658.75/21593/21500.35/21492.90/ 21448.65/21285.55/ 21137.20/20976.80/20769.50/20291.55/20222.45/19991.85/19875.25/19839/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.

Resistance: 21801.45/21813.05/21834.35/21926.76/22124.15/22128.80/22220/22459/22478/22590/23082/23124/23587.

 (Bold and underlined figures are most important)

it opened on a good positive note and had both side moves during the day and finally ended the day with a  loss of 82.10 points. It is exhibiting huge volatility in fact having a see-saw movement quite often, it happened today also which is not a good sign for a steady and smooth movement and may eventually drag it down lower. 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.

 Kindly note that to keep the up momentum going on in the year 2024 it has to sustain above its  most critical & important points of 21727.75---21731.40 &21801.45 on the closing basis, but today it closed below one of the critical point of 21801.45, which is a weak sign and if it give sustained break below the other two points of 21731.40 & 21727.75 it may trigger fresh fall and break below 21609(figure will change every day) may accelerate the fall, but as long as it holds its pullback threshold points of 21282 & 21370.12(figure may change) chances of up move will still be alive, which may be kept in mind.

The chart setup has improved, but it is into short corrective mode for its very recent rise as it below its threshold point of 21893.25(figure may change) and moving down from here it may find possible support at 21748.77----21731.40----21727.75-----21632---21515.23---21370.12—21335.15---21282—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 21137.20 will trigger fresh fall. Similarly if it moves above then the target or resistance points could be at 21801.45---21834.45---21893.25---21926.76---22124.15---22126.80---22220----22392.60, if it moves above 21926.76 and sustain on the closing basis then it could retest its all-time high of 22126.80 or may go beyond it also. 

It is very important to mention here that three out of five important technical indicators are still negative now on the daily chart and indicates that it could drag it down to lower levels or may have mixed and wild movements on the either side, in the coming days, furthermore one most important indicator on the weekly & monthly chart is also negative and it is into short term corrective mode for its recent rise. The overall chart setup is OK as of now, but it is in corrective mode and closed below one of its critical point of 21801.45 and if it fails to hold the other two points as mentioned above then it may start to drift down again. 

IMPORTANT NOTE: -- IT CLOSED BELOW ONE OF ITS CRITICAL POINTS OF 21801.45 AND IF IT FAILS TO HOLD THE OTHER TWO POINTS 21731.40 & 21727.75 THEN IT CAN HEAD DOWN AND BREAK BELOW 21609 MAY ACCELERATE THE FALL. BUT THE HOPE OF CONTINUATION OF THE UP MOVE WILL BE ALIVE TILL IT HOLDS 21370.12 &21282 ON THE CLOSING BASIS.

TRADING TIPS:--

1. Long trade can be tried on decline if it holds the range of 21731---21725 with a stop loss of 21670 or if it moves above 21829 and maintain for some time with a stop loss of 21760.  Please note that long trade in corrective mode could be a risky affair but can be tried at extreme critical support points with strict stop loss 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 term corrective mode for is very recent rise, but pullback mode is also on, even then 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 22960--- 22000 with a stop loss of 22050 or sell below 21670 with a stop loss of 21750. 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