A TECHNICAL UPDATE ON CNX-NIFTY-2.5.2024.

 

CNX-NIFTY

Open-22679.65-High—22783.35—Low—22568.40--Close-22604.85 on 30.4.2024.

Support: 23576.09/ 22546/22526.60/22443/22433/22399.

Resistance: 22664.33/22687.04/22730/22775.70/22783.35/22838/23047/23117/23156.

It opened on a positive note and thereafter had both side moves during the day and hit a new all-time high of 22783.35 but in the last hour of trade it slipped down from the top and finally ended the day with a loss of 38.55 points. After yesterdays robust up move today’s movement gave a weak indication as it slipped into very short correction mode because it closed below its threshold point of 22687.04, break below 22546 will deepen the correction, sustained break below 22526.60 may derail the up momentum and finally sustained break below the range of 22443---22433---22399 may trigger fresh fall and it may witness accelerated down move. The bias is bullish as of now, but since it gotten into corrective mode it may correct further but if it holds the range of 22576.09---22546----22526.60 then it can bounce back immediately and may resume the up move or if it moves above 22687.04 and sustain then it may certainly resume the up move again.    

The important technical indicators on the daily, weekly and monthly chart is giving mixed signal pointing that it may have both side moves in coming days/week/months with slight downward bias, but as long as the other parameters such as moving average placement and price action remains good the up move may continue and eventually the indicators may also turn positive but as of now indicators weakness is still a concern. The long term trend is up therefore it is buying on decline market now but it is short correction also so be cautious. The volatility is still continuing which is not a good sign for a steady market and eventually it can drag it down in coming days/weeks & months, so be alert and watchful and ride the on-going rise with slight caution because it may give severe downside corrective jerk at times as it gave today.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 22570---22527 and then on sharp decline near or within the range of 22450---22430 but not below it with a stop loss of 22500 & 22390 respectively or can buy if it moves above 22657 and maintain for some time with a stop loss of 22600. Since it slipped into short correction it would be relatively safe to try long trade above 22657.

2. It is in the long term uptrend therefore short trade in general could be a highly risky affair; but it is still into short correction mode, 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 22765--- 22800 with a stop loss of 22860 or can sell near 22626 if it does not move above it in first hour of trade even intraday with a stop loss of 22660. 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