A TECHNICAL UPDATE ON CNX-NIFTY-24.5.2024.

 

CNX-NIFTY

Open-22614.10—High—22993.60—Low—22577.45--Close-22967.85 on 23.5.2024.

Support:22958/22794.70/22783.35/22775.70/22730/22678.85/22568.40/22554.68/22526.60/22348.05/22305.25/22297/22224.35/22126.80/21883/21875/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance:23039/23060/23092/23117/23167/23201/23282/23397/23444/23525/23768.

It opened on a positive note and went down a little and thereafter steadily moved up and hit a new all-time high of 22993.60 and finally ended the day almost near the high of the day with a robust gain of 369.85 points. It is exhibiting extraordinary strength in the last few days, therefore it is likely to continue the up move in the coming days, but in the last 10 days except for 1 day it vertically moved up for 9 days and last 6 days in a row and with each rising day vulnerability of correction is also increasing, so be alert and watchful because correction can happen any day henceforth. The long term trend is up and short term trend is also up.

STRENGTH:-

1. It is in the long term uptrend now.

2. It is in the new zone.

3. It is well above its critical points of 21821.05---21801.45---21777.65---21731.40---21727.75 & 21710.20, which is must to keep the up momentum going in the year 2024.

4. It is out of all corrective mode and its correction threshold point for its recent rise is 22716.88(figure may change).

5. It is above all its short term moving averages on the daily & weekly chart and the important range of averages is between 22533---22434---22420---22400(figures will change every day) for the day, sustained close above this range will keep the continuation of the up move intact.

6. Moving down the possible good bounce back support point could be at 22794.70----22775.75---22716.88---22546----22526.60----22407---22269----22126.80---22098----22056----21860----21821.05----21777.65----21710.20(figures may change), break below 22794.70 & 22775.75 could be a alert sign, break below 22716.88 will push it into correction mode for its recent rise, break below 22526.60 could be a warning sign and sustained break below 22056 can pull it down to 21821.05 & 21777.65  levels and finally sustained break below these points could be a warning sign and can drag it down to devastatingly lower levels in coming days and may make the correction more painful time wise and value wise both, which may please be noted. So 21821.05 & 21777.65 is a very strong and may be the last bounce back support points as of now or make or break point or benchmark points. So be watchful.

6.  All the important technical indicators are positive on the daily chart.

7. It is above its recent key points of 22775.75 &22794.70.

8. It has been making higher top and bottom on the line and bar chart.

9. The price action has been mixed for the last few days and today it was hugely positive.

WEAKNESS:-

1. Technical indicators are weak on the weekly and monthly charts and pointing that it could head down in coming weeks and months.

2. Volatility can be seen in the market quite often, which is not a good sign for a steady market condition and it can eventually drag it down may be drastically in the coming days/weeks and months. So be watchful.

OVERALL VIEW: -- It is in the new zone now, therefore up move is likely to continue with the intermittent correction. Please note that if it manages to hold the key points of 22794.70---22775.75 & 22716.88 the up move is likely to continue and sustained break below these points could be a warning sign and can push into correction mode and can drag it down lower. Since it is in the new zone it is buying on the decline market as of now.

TRADING CALL: --

1. Long trade can be tried on decline near 22795 with a stop loss of 22700 or can buy if it moves above 22995 and maintain for some time with a stop loss of 22930.

2. Short trade can be tried on the rise near or within the range of 23230--- 23280 with a stop loss of 22350. It could be a risky trade but can be tried 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