A TECHNICAL UPDATE ON CNX-NIFTY-26.4.2024.

 

CNX-NIFTY

Open-22316.90-High—22625.95—Low—22305.25--Close-22570.35 on 25.4.2024.

Support: 22529.95/ 22526.60/ 22525.65/22516/22452.55/22440.90/22297.50/22234.35/ 22180.70/22126.80/22124.15/21905.65/ 21883.30/21875.25/21860.65/21834.35/21801.45/21763.95/21750.25/ 21731.40/21727.75/21710.20/ 21593/21530.20/21500.35/ 21448.65/21285.55/21137.20/20976.80/20769.50/20507.75/20291.53/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.

Resistance: 22623/22730/ 22787/22800/22838/22870/22935/23072/23117/23139/23344.

 (Bold and underlined figures are most important)

It opened with a down gap but did not go much low after that and then started to recover and steadily moved up and in the process filled the days gap also and finally ended the day with a good gain of 167.95 points. It continued the up move for the 5th day in a row and today it exhibited good strength, which is a positive sign for the continuation of the up move. Please note that the gap it created on 22.4.2024 is still there and if it makes an effort to fill the gap in the next 1-2 trading sessions, which is technically possible then it can go down to 22179.55, but if it fails to fill the gap within the stipulated time then the chance of filling the gap will recede for the time being, but eventually it will fill the gap someday, which please keep in mind. The volatility is continuing which is not a good sign for a steady market and eventually it can drag it down 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 & daily gap of 22503.75(15.4.2024) is yet to be filled), which please note.

Moving up from here the important resistance points could be at 22576.09-------22619----22664.33-----22775.70----22787----22800---22838----22870----22935,(figure may change) and for in between and other resistance points please refer the resistance table at the top. Please note that it may correct at any of these points and then may resume the up move again or may exhaust the up rally for a while. Please note that sustained close above 22576.09 may somewhat ensure that it could retest its all-time high of 22775.70 or may go beyond it also.

Similarly moving down from here the broad important support points could be at 22540.16---22526.60------22524.24----22399-----22395----22390----22389---22382----22342---22318----22277---22158.91-----22126.80---22013.19----21962---21923----21913----21883.30-----21860---21846.37----21801.45----21731.40----21727.75-----21710.20----21530.20---21448.65-----22285.55----21137.20(figures may change), and for in between and other support points please refer the support table at the top. Please note that it may bounce back from any of these points. It is already into deep correction mode and will get out of it once it closes above 22664.33, sustained break below 22526.60 may derail the up momentum, sustained break below the range of  22392---22342 will weaken it further, break below 22126.80 will be an alert sign but if it manages to hold 22013.19(pullback threshold point) on the closing basis then the chances of up move will be alive, it has a very strong support in the range of 21962---21923 therefore it is expected to bounce back from this range but sustained break below the range will open up the possibility to drag it down to 21710.20 levels or much below, break below the range of 21801.45—21786.47---21731.40----21727.75---21710.20 may jeopardize the up momentum for the year 2024. Please note that the most crucial , key and last important support point is 21710.20 and sustained break below it may accelerate the fall and then the correction could be  deep & painful time and value-wise both.

It is important to mention here that two out of five important technical indicators have turned positive today but three are still negative on the daily chart, so it may have both side moves in coming days. Furthermore three important indicators on the weekly and one indicator on the monthly chart is also negative pointing that it could head down in coming weeks/months. But the other parameter such as moving average placement and price action has improved smartly in the last few days and if it continues to improve then the up move may continue. But the indicators weakness on the daily, weekly & monthly chart is still a concern, therefore due caution is important and necessary to ride the rise because the on-going rally may end abruptly also if it does not move and sustain above important points on the closing basis, which may please be kept in mind. It is in the long-term uptrend; but into short correction mode, but pullback mode is also on therefore both side trades can be tried depending on price action.  

IMPORTANT NOTE: -- IF IT MOVES ABOVE 22576.09 AND SUSTAIN ON THE CLOSING BASIS THEN IT CAN RETEST ITS ALL-TIME HIGH OF 22775.70 OR MAY GO BEYOND IT ALSO. IT IS SUGGESTED TO AVOID LONG TRADE BELOW 22490 FOR THE DAY.

TRADING TIPS: --

1. Long trade can be tried on decline if it holds 22526.60 for some time with a stop loss of 22470 or can buy on deep decline near or within the range of 22425----22380 with a stop loss of 22320. Please note that long trade in a corrective mode could be a risky affair but can be tried near the important support points for pullback gains but with strict stop loss.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair; but it is into short correction mode now, therefore short trade can also be attempted on the 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 22775--- 22825 with a stop loss of 22875 or sell if it does not move above 22626 in first hour of trade even intraday with a stop loss of 22670 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