2 2 2
CNX-BANK NIFTY
Open—50889.85--High—51133.20--Low—50092.65---Close—50979.95
on 3.6.2024.
Support:50889.65/50467.77/50153.81/49974.75/49688.85/49057.40/48636.45/48381.95/48313.60/48292.25/48203.45/47435.25/47340.35/46983.25.
Resistance: 51133.20/51470/51823/51969/52218/52966.
It opened with a huge up gap and went up further and
hit a new all-time high of 51133.20
and stood firm during the day and finally ended the day with a whooping gain of
1996
points. Please note that the gap it created today is still there and if
it makes an effort to fill the gap in the next 4-5 days which is technically
possible then it can come down to 49122,
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. Please note that over the next 1-2 trading session it has to be seen that whether it will sustain today’s
up move or not, however as long as it holds these points 50467.77---50153.81(figure may change) & 49974.75 chances of
continuation of the up move will be there.
NOTE:-HUGE
VOLATILITY IS EXPECTED IN THE MARKET on 4.6.2024 IN WAKE OF THE ELECTION RESULT,
SO BE EXTREMELY ALERT AND CAUTIOUS IN YOUR TRADES. FOR SAFE TRADERS IT IS
SUGGESTED STAY OUT OF THE MARKET FOR THE DAY.
STRENGTH:-
1. It is in
the long term uptrend.
2. It is well above
its most critical points of 48203.45---48292.25 & 48636.45, please note that it must stay above all these
points to keep up the strong up momentum going in the year 2024.
3. It is way
above all it’s all short term moving averages on the daily and weekly chart and
the important average range is between 49212---49086---48914---48729---48710---48636.45---48379--48292---28203(figures
will change every day), and if it
sustains above it on the closing basis then the up move may continue, else it
may move down.
4. It is
above its medium and long term moving averages.
5. It is well
above its correction threshold point of 50467.77 & 50153.8(figure may
change) for its very recent rise and as long as it holds these points on the
closing basis it is likely to continue the up move ,else it will slip into correction
mode and can drift down.
6. Moving
down the possible good bounce back point could be at 50467.77---50153.81----50056----49974.75---49723----49548----49391----49058---48979---48877----48636.45----48569----48313---48293----48203----47963---47813---47259---46983.25(figure
may change), break below 50467.77 will push it into short correction
mode for its recent rise, break below 50153.81 will push it into deep
corrective mode, break below 49974.75 could be an extreme alert point ,
thereafter break below each point will weaken it, break below 48636.45
will be a warning sign, break below 48292.25 & 48203.45 will be a deep
warning sign, sustained break below 47813 can pull it down to 46983.25
sustained
break below 47259 will threaten the long term uptrend and finally sustained
break below 46983.25 could be an ultimate warning sign and can drag it down to
devastatingly lower levels in coming days and may make the on-going correction
more painful time wise and value wise both, which may please be noted. So 47813—47212
& 46983 is a very strong and may be the last bounce back support points as
of now or make or break point or benchmark points.
7. It is
making higher top and bottom on the line & bar chart.
8. Four out of five
important technical indicators are positive on the daily chart.
9. The price
action has been mixed for the last few days and today it was positive.
10. It is in
new zone.
WEAKNESS:-
1. Some
important technical indicators are weak on the daily/weekly and monthly charts
and pointing that it could head downs in coming days/weeks and months.
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.
OVERALL VIEW: -- It had a
massive rise today showing good strength but the huge gap up is a concern
,therefore it has to be seen over next 1-2 days trading sessions whether
it can hold this rise or not, however as long as it holds the range of 50467.77---50153.81
& 49974.75 chances of continuation of the up move will be
there, else it may get into correction mode. It is in the new zone now,
therefore it is a buy on decline market in general ,but short trade can also be
attempted on the reasonable rise with strict stop loss for intraday corrective gains.
It could be a risky affair but worth trying.
TRADING CALL: --
1. Long trade can be tried on decline near
or within the range of 50467----50160 with a stop loss of 50040
or can buy if it moves above 51135 and maintain for some time with a
stop loss of 50850.
2. Short
trade can be tried on the rise near or within the range of 51800 —52000 with
a stop loss of 52150 or can sell below 50700 with a stop loss of 50900.
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
Email—suranank@gmail.com
Mobile—8240951127/9831313654.
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