A TECHNICAL UPDATE ON CNX-NIFTY-30.5.2024.

 

CNX-NIFTY

Open-22762.75—High—22825.50—Low—22705.60--Close-22on 29.5.2024.

Support: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: 22730/22775.70/22783.35/22794.70/22958/23039/23060/23092/23117/23167/23201/23282/23397/23444/23525/23768.

It opened with a huge down gap and then had both side moves during the day and finally ended the day with a loss of 183.45 points. The gap it created today is still there and if it makes an effort to fill the gap in the next 3-4 days which is technically possible then it can come up to 22859, but if it fails to fill the gap in the stipulated time then the chances of filling the gap will recede for the time being but eventually it will fill the gap some day. Today it slipped into correction mode for its very recent rise as it closed well below its threshold point of 22806.42, furthermore it also closed below its two most critical point of 22794.70 & 22775.75, both are the weak sign and if it sustain below these points it may continue to move down. However the last important support range exist between 22694---22585---22574---22482, and if it manages to hold this range on the closing basis then it could still bounce back, but sustained break below this range can witness an accelerated fall.

STRENGTH:-

1. It is in the long term uptrend now.

2. 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.

3. It is above all its short term moving averages on the daily & weekly chart and the important range of averages is between 22694---22585—22482(figures will change every day) for the day, sustained close above this range will keep the continuation of the up move intact.

4. Moving down the possible good bounce back support point could be at 22600---22546----22526.60----22466---22407---22269----22126.80---22098----22056----21860----21821.05----21796----21777.65----21710.20(figures may change), , it slipped into correction mode and went below other key points also as mentioned below, which is a weak 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, break below 21796 will threaten the long term uptrend. So 21821.05---21796 & 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.

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

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

WEAKNESS:-

1. It slipped into correction mode today and it will get out of it once it moves above 22806.42 and sustain on the closing basis and then it could get back on the up momentum track again.

2. It is below its recent key points of 22775.75 & 22794.70.

3. 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.

4. 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.

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

OVERALL VIEW: -- It slipped below its important key range of 22806.42---22794.70---22775.75 today and if it remains below this range then it can continue to drift down. The last  bounce back range is between 22694---22585---22574---22482, and if it fails to hold this range it can witness an accelerated fall. It is in the long term uptrend but into correction mode now therefore both side trades can be attempted depending on the price action. But please note that both side trades amid volatility and in a corrective market could be a risky affair, so be alert and watchful in your trades.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 22585----22527 with a stop loss of 22450.

2. Short trade can be tried on the rise near or within the range of 22800--- 22860 with a stop loss of 22920 or can sell if it moves below 22650 with a stop loss of 22750. 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