2 2 2
CNX-BANK NIFTY
Open—49857.45--High—50233.40--Low—49697.35---Close—49895.10
on 12.6.2024.
Support:49688.85/49202/49057.40/48636.45/48381.95/48313.60/48292.25/48203.45/47435.25/47340.35/46983.25/46579.05/45828.80/45661.75/44633.55/44429.
Resistance:49974.75/50153.81/50467.77/50889.65/51133.20/51470/51823/51969/52218/52966.
OVERALL VIEW: --
It opened on a positive note and thereafter had both
side moves and finally ended the day with a gain of 189.35 points. Please note that after
retracing more than 80% of the recent
entire fall in the last few days, it is finding it slightly difficult to surge
ahead despite good technical setup, furthermore despite the recent rise some
important technical indicators on the daily, weekly and monthly chart are still
negative, which indicates that it may fall in coming days/weeks. Therefore till
it moves above 49940.14----49974.75-----50122.13----50153.81
& 50467.77 and sustain on the closing basis this rally may fizzle out any
time soon. But if it moves above 49974.75---50122.13
& 50153.81 and sustain on the closing basis then it could retest its
all-time high of 51133.20 or may go
beyond it also, else it may start to drift down again and break below the range of 49481---49378---49310---49187---49033---48894(figures
will change every day) will be a warning sign for down move to start and
finally sustained break below the range of 48636.45---48292.25 &48203.45 will trigger fresh fall and it could be moderate to sharp
in the intensity. So be watchful. Since it is still in corrective mode therefore it is
sell on the rise market now in general, but long trade can also be attempted on
decline at crucial and critical support point with strict stop losses for
pullback gains.
NOTE: - BREAK BELOW 49705.75 & 49530.45 ON
THE CLOSING BASIS CAN TRIGGER FALL. SIMILARLY CLOSE ABOVE 50252.95 CAN CONTINUE
THE UP MOVE.
STRENGTH:-
1. It is in
the long term uptrend; but break below 47504(figure will change every day)
will threaten the long term uptrend.
2. It is 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
well above its pullback threshold point of 47271(figure may change), and
if it sustains above it then the possible broad upside target points could be
at 49940---49974.75----50122.13----50153.81---50467.77. Please
note that if it moves above 50122.13 and sustain on the closing basis
then it could retest its all-time high of 51133.20 or may go beyond it.
4. It is
above all its short & medium term
moving averages on the daily and weekly chart, and the important range is
between 49481---49378---49310---49187---49033---48894(figure will
change every day), sustained break below this range can trigger down move
again.
5. Two out
of five important technical indicators are positive on the daily chart.
6. The price action
was positive today.
7. It has
made higher top & bottom on the line chart recently.
WEAKNESS:-
1. It is into
deep correction mode for its earlier and its recent rise and it will get
out of all corrective modes once it moves above 50153.81 &50467.77 and sustain on the closing basis.
2. Some
important technical indicators are weak on the daily/weekly and monthly charts
and pointing that it could head down to lower levels in coming days/weeks and
months.
3. 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.
TRADING CALL: --
1. Long trade can be tried on decline near
or within the range of 49808---49706 with a stop loss of 49500
for pullback gains, else avoid.
2. Short
trade can be tried on the rise near or within the range of 50350---50450 with
a stop loss of 50550 or can sell below 49680 or 49500 with a stop
loss of 49920 & 49720. 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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