A TECHNICAL UPDATE ON CNX-NIFTY-12.6.2024.

 

CNX-NIFTY

Open-23283.75—High—23389.45—Low—23206.65--Close-23264.15 on 11.6.2024.

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: 23282/23338.70/23397/23411.90/23456/23525/23573/23630/23768/23804.

OVERALL VIEW: --

It opened on a positive note and thereafter had both side moves during the day and finally ended the day on a flat note with a meager gain of 4.95 points. It is out of corrective modes, it is showing good strength but the up move is still lacking volumes and most importantly it has failed to close above its critical top of 23338.70 which is highly 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 only the on-going up move may extend, else this rally may fizzle out any time. 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 22936----22924----22834----22812----22765----22728 —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 21964(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 22936----22924----22834----22812----22765----22728 (figure will change every day), sustained break below this range can trigger down move again.

5. Sustained break below 22526.60 may end the up momentum rhythm.

 

6. Three out of five important technical indicators is positive on the daily chart.

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 and bottom on the line & higher top on the 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. 

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

TRADING CALL: --

1. Long trade can be tried if it holds 23260 for some time with a stop loss of 23150, 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