A TECHNICAL UPDATE ON CNX-NIFTY-29.5.2024.

 

CNX-NIFTY

Open-22977.15—High—22998.55—Low—22858.50--Close-22888.15on 28.5.2024.

Support: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:22958/23039/23060/23092/23117/23167/23201/23282/23397/23444/23525/23768.

It opened on a positive note and thereafter had both side moves during the day and finally ended the day with a loss of 44.30 points. After 10 days of rise it has been falling for the last 3 days, but it is exhibiting good strength and in the new zone, therefore it is likely to continue the up move in the coming days provided it holds its key range of 22806.42---22794.70 & 22775.75, sustained break below this range could drag it down. The long term trend is up and short term trend is also up as of now.

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 now and its correction threshold point for its recent rise is at 22806.42(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 22699---22564—22477(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 22806.42----22794.70----22775.75----22546----22526.60----22407---22269----22126.80---22098----22056----21860----21821.05----21777.65----21710.20(figures may change), , break below 22806.42 will push it into correction mode for its recent rise, break below 22794.70 & 22775.75 could be an extreme alert sign, break below 22526.60 could be a warning sign and sustained break below 22079 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.

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

8. It is above its recent key points of 22775.75---22794.70 & 22806.42.

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

WEAKNESS:-

1. Some technical indicators are still weak on the weekly and monthly charts and pointing that it could head down in coming weeks and months, so be watchful in view of this..

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.

3. The price action has been mixed for the last few days and today it was negative.

OVERALL VIEW: -- The up move is likely to continue with the intermittent correction  if it manages to hold the key range of 22806.42---22794.70---22775.75 but sustained break below these points could be a warning sign and will push it into correction mode and can drag it down lower. Since it is in the new zone it is buying on the decline market in general as of now but short trade can also be attempted after a reasonable rise for intraday corrective gains with utmost caution and care.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 22806----22785 with a stop loss of 22740.

2. Short trade can be tried on the rise near or within the range of 23040--- 23060 with a stop loss of 23120 or can sell if it moves below 22740 with a stop loss of 22820. 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