A TECHNICAL UPDATE ON CNX-NIFTY-9.5.2024.

 

CNX-NIFTY

Open-22231.20-High—22368.65—Low—22185.20--Close-22302.50 on 8.5.2024.

Support: 22297/22224.35/22126.80.21883/21875/21860/21777.65.

Resistance: 22305.25/22348.05/22526.60/22554.68/22568.40/22678.85/22730/22775.70/22783.35/22794.70.

It opened on a negative note and then had both side moves during the day and finally ended the day absolutely flat with zero gain or loss. It is already into deep correction mode for its recent rise and exhibiting gross weakness in the last few days, therefore it is likely to head down further from here, but it may have a short relief rally any day because of the straight fall from the top before resuming the down move again. However if in the possible relief rally it closes above its few important key points as mentioned below then the up move can extend further. 

STRENGTH:-

1. It is in the long term uptrend now. 

2. The short range for it now is between 22794.70---22305.25(it is below this range now) and the long range is between 22794.70----21777.65.

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

4. Moving down the possible good bounce back point could be at 22286---22166---22126.80---22018----21981---21860----21777.65----21710.20, sustained break below 22126.80 will weaken it further, sustained break below 21981 can pull it down to 21777.65 & 21710.20 levels and finally sustained break below these points could be a warning sign and can drag it down to much lower levels. So 21777.65 & 21710.20 is a very strong bounce back support points.

WEAKNESS:-

1. It is into correction mode now.

2. It is below its up momentum threshold point of 22526.60.

3. It is below its important short term moving averages range of 22434---22426----22407(figures will change every day) on the daily chart, sustained close above this range may provide good strength for the up move to continue.

4. It is below its pullback threshold point of 22329.04(figure may change), if it closes above it and sustains then it will give a ray of hope for a meaningful up move.

5. It has broken its recent bottom on the line and bar chart.

6. Technical indicators are weak on the daily/weekly and monthly chart, pointing that it could head down to much lower levels in coming days.

7. The price action is also showing weakness.

OVERALL VIEW:--The overall technical setup is weak as of now  and since it is in correction mode therefore it is sell on the rise market now or sell on the price breakdown. So for safe traders it is suggested to avoid long trade till it closes above 22329.04 at least and sustain or till visible sign of correction completion emerges on the down side. But aggressive traders can try long trade on decline at important support points or range for pullback gains. The long term trend is up, but the short term bias is negative.

TRADING CALL: --

1. Aggressive traders can try long trade on decline near or within the range of 22185---22127 but not below it with a stop loss of 22060 or can buy near 21780 with a stop loss of 21690 or can buy if it moves above 22349 and maintain for some time with a stop loss of 22295 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 22430--- 22460 with a stop loss of 22500 or can sell if it moves below 22180 with a stop loss of 22270.  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