A TECHNICAL UPDATE ON CNX-NIFTY-14.6.2024.

 

CNX-NIFTY

Open-23480.95—High—23481.05—Low—23353.90--Close-23398.90 on 13.6.2024.

Support:23397/23338.70/23282/23110.80/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20/21530/21281.65/21137.20/20976.80/20769.50/20507.75/20291.55/20222.45.

Resistance:23411.90/23441.95/23481.05/23456/23525/23573/23630/23768/23804.

OVERALL VIEW: --

It opened with an up gap and hit a new all-time high of 23481.05 and then drifted down and moved in a range thereafter and in the process it filled the day’s gap also and finally ended the day with a gain of 75.95 points. It is showing good strength and finally today it closed above its critical top of 23338.70 which is good sign for the continuation of the up move. But despite the vertical rise some of the important technical indicators are still negative on the daily, weekly & monthly chart, which indicates that it could fall in coming days/weeks, but as long as price action remains good there is no major threat for it to move down. However even if it moves down but as long as it holds the range of 23229.93---23110.80---23089.29(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 23124----23070----22965----22949----22874----22834 may trigger fresh fall break below 22526.60 may accelerate the fall, which may please be noted. 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.

NOTE: - BREAK BELOW 23259.20 & 23200 ON THE CLOSING BASIS CAN TRIGGER FALL. SUSTAINED CLOSE ABOVE 23338.70 CAN CONTINUE THE UP MOVE WITH IN BETWEEN CORRECTIONS.

STRENGTH:-

1. It is in the long term uptrend now. Break below 22007(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 23124----23070----22965----22949----22874----22834 (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 23200---23110.80---23059.42---22961---22932.07---22898(figures may change).

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

9. The price action was positive today.

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 23340 with a stop loss of 23280 or on decline near 23260 with a stop loss of 23200, else avoid.

2. Short trade can be tried on the rise near or within the range of 23500---23530 with a stop loss of 23580 or can sell if it moves below 23330 & 23200 with a stop loss of 23415 & 23270. 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