CNX-NIFTY
Open-22620.40-High—22620.40—Low—22385.55--Close-22419.95 on 26.4.2024.
Support: 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: 22440.90/22452.55/22516/22525.65/22526.60/ 22529.95/ 22623/22730/
22787/22800/22838/22870/22935/23072/23117/23139/23344.
(Bold
and underlined figures are most important)
It opened on a positive note and the open was
the high of the day, thereafter it started to move down and finally ended the
day with a loss of 150.40 points. Please note that
after 5 days of rise in a row it corrected today but the concerning
thing is that it decisively closed below its momentum picking threshold point
of 22526.60 and if it does not
bounce back above it in the next 2-3 trading sessions then it may head
down further. 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 trading session, 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 is yet to be filled), which please note.
Moving up from here the important resistance points could be at 22524.24----22526.60------22540.16---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 22526.60 will put it back on the up momentum
track again and 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 22403----22399-----22395-----22393---22389------22349---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 short correction mode and will get out of it once it closes
above 22664.33, sustained break below the range of 22403---22349 will weaken it further
and may trigger fresh fall,, 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 are positive now but three are still
negative on the daily chart, so it may have both side moves in coming days with
slight downward bias. Furthermore three important indicators on the weekly and one
indicators on the monthly chart is also negative pointing that it could head
down in coming weeks/months. It has made lower top on the line chart today
which is a weak sign. But the other parameter such as moving average placement
is good and the price action has also been more or less consistently positive
in the last few days. Therefore if the other parameter continues to improve
then the up move may continue. I once again reiterate that indicators weakness
on the daily, weekly & monthly chart is still a concern, therefore due
caution and alert is important and necessary to ride the rise, because the
on-going rally may end abruptly also and today’s fall was may be just a
trailer. Please note that if it does not move and sustain above its important
point of 22526.60 in the next 2-3 trading sessions on the
closing basis then the down move may continue. It is in the long-term uptrend;
but into short correction mode, the pullback mode is also on therefore both
side trades can be tried depending on price action but one has to be alert and
careful in the long trade at this point of time.
IMPORTANT NOTE: -- FOR SAFE TRADERS IT IS SUGGESTED TO AVOID LONG TRADE TILL IT CLOSES
ABOVE 22526.60.
TRADING TIPS: --
1. Long trade can be tried on decline near or within the
range of 22385----22350 with a stop loss of 22300. 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 22525--- 22575 with a stop loss of 22630 or sell
below 22340 with a stop loss of 22430. 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
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