2 2 2
CNX-BANK NIFTY
Open—49316.95--High—49943.20--Low—49080.45---Close—49803.20
on 7.6.2024.
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 flat to positive note and went down
slightly lower and thereafter gradually moved up and finally ended the day with
a gain of 511.30
points. Please note that after the vertical fall on 4.6.2024 In the last three days it bounced back vertically and retraced 76.40% of the recent fall ,the on-going up move was good but lacked
volumes which is slightly concerning, furthermore despite the vertical rise the
technical indicators has weakened further on the daily & weekly chart,
which is a very weak sign. 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 49112---49064---49028---48872----48765(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 at this point of time. 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.
STRENGTH:-
1. It is in
the long term uptrend; but break below 47396(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 49112---49064---49028---48872----48765---48590(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 has been mixed for the last few days and today it was positive.
WEAKNESS:-
1. It is into
deep correction mode for its earlier and its recent rise and it will get
out of all corrective mode once it moves above 50153.81 &50467.77 and sustain on the closing basis.
2. It has
broken all tops & bottoms on the line chart and bar chart at one go on 4.6.2024.
3. 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.
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.
TRADING CALL: --
1. Long trade can be tried on decline near
49200 with a stop loss of 49000 or on sharp decline near 48636.45
with a stop loss of 48450 or can buy if it moves above 49975
and maintain for some time with a stop loss of 49775 for pullback gains,
else avoid.
2. Short
trade can be tried on the rise near or within the range of 50450---50550 with
a stop loss of 50680 or can sell below 49000 with a stop loss of 49220.
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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