A TECHNICAL UPDATE ON CNX-NIFTY-11.6.2024.

 

CNX-NIFTY

Open-23319.15—High—23411.90—Low—23227.15--Close-23259.20on 10.6.2024.

Support:23110.80/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20/21530/21281.65/21137.20/20976.80/20769.50/20507.75/20291.55/20222.45.

Resistance: 23282/23338.70/23397/23456/23525/23573/23630/23768/23804.

OVERALL VIEW: --

It opened on a positive note and thereafter had both side moves during the day and in the process hit a new all-time high of 23411.90 and finally ended the day with a loss of 30.95 points. It got out of all corrective mode, it is showing good strength but the up move is lacking volumes and today after hitting a new all-time high it slipped and closed below its previous major top or high of 23338.70 which is slightly concerning, furthermore despite the vertical rise some of the important technical indicators are still negative on the daily, weekly & monthly chart, which is a weak sign and indicate that it could fall in coming days/weeks. Therefore please note that if it moves above 23338.70 and sustain on the closing basis then the on-going up move may extend, else this rally may fizzle out. However as long as it holds the range of 23177.10---23110.80---23036.46---22961---22909.11(figure may change) on the closing basis chances of continuation of the up move will be alive, but break below this range could be a warning sign and finally sustained break below the range of 22848----22775----22713----22676—22526.60 may trigger fresh fall and it could be moderate to sharp in the intensity. So be watchful. Since it is out of all corrective modes it is buy on decline market now, but short trade can also be attempted on the rise at appropriate points for intraday gains. In light of the huge volatility traders should be extremely alert and cautious in the both side trades.

STRENGTH:-

1. It is in the long term uptrend now. Break below 21943(figure will change every day) will threaten the long term uptrend.   

2. It is well above its critical points of 21821.05---21801.45---21777.65---21776.87---21731.40---21727.75 & 21710.20, which is must to keep the up momentum going in the year 2024. Sustained break below this range may witness accelerated fall.

3. It is in a new territory.

4. It is above all its short & medium  term moving averages on the daily and weekly chart, and the important range is between 22848----22775----22713----22676—22526.60 (figure will change every day), sustained break below this range can trigger down move again.

5. Two out of five important technical indicators is positive on the daily chart.

6. The price action has been mixed for the last few days and today it was positive.

7. It is out of all corrective modes now. The correction threshold points are 23177.10---23036.46-----22961---22875.07(figures may change).

8. It has made higher top on the line & bar chart.

WEAKNESS:-

1. 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.

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. 

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 23213----23177 with a stop loss of 23100 or can buy on sharp decline near 22790 with a stop loss of 22680 or can buy if it moves above 23338.70 and maintain for some time with a stop loss of 23250, else avoid.

2. Short trade can be tried on the rise near or within the range of 23400---23440 with a stop loss of 23500 or can sell if it moves below 23170 with a stop loss of 23270 or can sell if it does not move above 23338.70 in first one and half hour of trade even intraday with a stop loss of 23420. 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