A TECHNICAL UPDATE ON CNX-NIFTY-6.5.2024.

 

CNX-NIFTY

Open-22766.35-High—22794.70—Low—22348.05--Close-22475.85 on 3.5.2024.

Support:22348.05/22305.25/22224.35/22126.80/

Resistance:22526.60/22554.68/22568.40/22678.85/22730/22775.70/22783.35/22794.70

It opened with an up gap and hit a new all-time high of 22794.70 and thereafter steadily went down and finally ended the day below the low of the previous day with a loss of 250.80 points. Please note that it was a copy book reversal today and if it does not bounce back above its momentum gaining threshold point of 22526.60  and other important points as mentioned below in the next 2-3 trading sessions and sustain on the closing basis then it may head down further. But the good point is that it is still above its important range of 22454---22427 and if it hold this range then it can bounce back from here also, but sustained break below this range may trigger fresh fall.  The long term uptrend is on, but since it is into corrective mode it may correct further from here before resuming the up move again. But please note that if it holds 22454 levels on the closing basis chances of a meaningful up move will be alive, else it may head down,  it may get into the strong up momentum track again if it moves above the range of 22526.60---22554.68---22568.40---22604.85 & 22679.19 and sustain on the closing basis.   .

 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 a slight downward bias. Furthermore the some short term moving average placement has weakened a bit and it has broken its recent bottom on the line chart, but the price action is not that weak, therefore if these parameters improve then the up move may resume and eventually the indicators may also turn positive but as of now indicators weakness is still a concern and could drag it down further. The long term trend is up therefore it is buying on decline market in general, but since it is into deep short correction mode now, therefore short trade can also be attempted on the reasonable rise or price breakdown for intraday gains, but be alert and cautious in both side trades. 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 and few days back also. So be watchful.     

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 22454---22430 but not below it with a stop loss of 22340. Please note that trying long trade in a corrective mode could be a risky affair but it can be tried at the critical support points for pullback gains

2. Short trade can be tried on the rise near or within the range of 22680--- 22750 with a stop loss of 22810 or can sell below 22340 with a stop loss of 22460. 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