A TECHNICAL VIEW ON CNX-NIFTY-9.4.2024.

 

CNX-NIFTY

Open-22578.35-High—22697.30—Low—22550.35--Close-22666.30 on 8.4.2024.

Support: 22623/22529.95/22526.60/22525.65/22516/22452.55/22440.90/22297.50/22234.35/22180.70/22126.80/22124.15/21905.65/ 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: 22750/22787/22800/22838/22870/22935/23072/23117/23139/23344.

 (Bold and underlined figures are most important)

It opened with an up gap and went up further and hit a new all-time high of 22697.30 and finally ended the day with a gain of 152.60 points. It is showing good strength and after giving whip saw around its critical point of 22526.60 for quite some time finally it closed above it today and if it sustains above it then the further up move is likely to continue. But the gap it created today is still there and if it makes an effort to fill the gap in next 4-5 trading sessions, which is technically possible then it can come down to 22537. But if it fails to fill the gap in the stipulated time then chances of filling the gap will recede. 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, however as long as price action supports it may continue to move upside but fear of moving down may haunt at times because of the volatility, which please keep in mind.  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 22750----22787----22800---22838----22870---22935---23072---23117---23139---23344, it may correct at any of these points and may resume the up move again or may exhaust the up move for a while and move sideways.

Similarly moving down from here the broad important support points could be at  22623---22604.43----22529.95----22526.60---22464.34—--22363.52-----22320---22294----22290---22232----22198.70----22126.80---22118.40---22105---22022---21902.87---21871.36----21860---21801.45----21731.40----21727.75-----21710.20---21593---21500.35----21448.65---21285.55----21220----21137.20(figures may change), and for in between and other support points please refer the support table at the top, it may bounce back from any of these points and may resume the up move again. Please note that break below 22604.43 will push it into very short correction mode for its very recent rise, break below 22526.60 will break the up momentum, break below 22464.34 may deepen the correction, sustained break below the range of 22294---22232 and then below 22126.80 may trigger fresh fall, however as long as it holds 21902.87 on the closing basis chances of continuation of the up move will be alive, break below the range of 21801.45—21786.47---21731.40----21727.75---21710.20 may jeopardize the up momentum for the year 2024 and then break below each point will weaken it further and finally sustained break below 21220 & 21137.20 may accelerate the fall and will threaten the long term uptrend also.

It is important to mention here all the five important technical indicators are positive now on the daily chart, which is a positive sign and indicates further upside may be ahead. But three important indicators on the weekly and one indicators on the monthly chart is negative pointing that it could head down in coming weeks/months, but the weekly indicators have improved from the previous week which is good sign, but ,volatility & some weak weekly & monthly indicator is a concern. However, on the other parameters it looks good such as moving average placement, making higher top & bottom and price action has been consistently good and positive, therefore if the other parameters remain good the up move is likely to continue. But I once again repeat that some weekly & monthly indicators speak otherwise at this point of time, so ride the on-going rise with caution and alert. It is in the long-term uptrend; therefore it is buying on decline market now.

TRADING TIPS: --

1. Long trade can be tried on decline near or within the range of 22550----22527 with a stop loss of 22470 or can buy if it moves above 22702 and maintain for some time with a stop-loss of 22605.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair; but 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 22790--- 22830 with a stop loss of 22880. 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