A TECHNICAL VIEW ON CNX-NIFTY-27.2.2024.

 

CNX-NIFTY

Open-22169.20--High—22202.15—Low—22075.15--Close-22122.05 on 26.2.2024.

Support: 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:  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 with a down gap and then had both side moves during the day and in the process it filled the days gap also and finally ended the day with a loss of 90.65 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.

Today it just closed below the Inverse Head & shoulder pattern(bullish pattern) neckline which is placed at 22126.80, please note that it has been giving whip saw around this point in the last few days, which is a weak sign. Please note that to keep up the up momentum going it has to sustain above 22126.80 on the closing basis, else it may start to head down. The maximum upside target for the pattern could be 23117 with in between resistance points at 23376---23457---23623---23787---22870.

Moving down the important support points could be at 22116.47---22023.67---22007.48---21992---21914-----21900---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, but sustained break below  22116.47 & 22023.7  will push it into short & deep short term correction mode for its very recent rise, sustained break below the range of 21992---21900 may trigger fresh fall and then break below each point will weaken it further and sustained break below 21137.20 may accelerate the fall.

Similarly moving up from here its target or resistance points could be at 22124.15----22126.80---22252.50---22297.50----23376---23457---23623---23787---22870.  

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 placements are still good but price action was weak today, therefore if these parameter remains good and if it moves and sustain above 22126.80 then the up move may 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 if it holds the range of 22116---22075 for some time with a stop loss of 22000 or if it moves above 22153 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 22220--- 22250 with a stop loss of 22320 or sell below 22000 with a stop loss of 22130. 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