A TECHNICAL UPDATE ON CNX-NIFTY-20.6.2024.

 

CNX-NIFTY

Open-23629.85—High—23664—Low—23412.90--Close-23516 on 19.6.2024.

Support:23481.05/23456/23441.95/23411.90/23397/23338.70/23282/23110.80/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20/21530/21281.65/21137.20/20976.80/20769.50/20507.75/20291.55/20222.45.

Resistance: 23573/23630/23664/23768/23804/23952/24183/24678.

OVERALL VIEW: --

It opened with an up gap and hit a new all-time high of 23664 and thereafter had wild swings during the day and in the process it filled today as well as yesterdays gap also and finally after five days of rise in a row it took a breather today and ended the day with a loss of 41.90 points. It is exhibiting good strength but the volatility could be a dampener in coming days, which please keep in mind. Please note that it slipped into very short correction mode for its recent rise today as it closed below its threshold point of 23556.07 but as long as it holds its critical top of 23338.70  on the closing basis there is no major threat to the on-going up move which is good sign for the continuation of the up move, but sustained break below 23338.70 could be an alert sign and sustained break below the range of 23271---23259.20----23251---23229.06---23206.65----23128---23110.80---23101.72----23068----23040----22986----(figures may change) may trigger fresh fall or it may bounce back anywhere from this range and may resume the up move again and finally sustained break below 22526.60 may accelerate the fall. Kindly note that despite the vertical rise recently 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 please note that as long as price action remains good there is no major threat for it to move down and the price action has been good so far. 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.

NOTE: - 1. UP MOVE TO CONTINUE IF IT SUSTAINS ABOVE 23338.70.

                   2. BREAK BELOW THE RANGE OF 23259---22986 WILL TRIGGER   

                       FRESH FALL.     

 STRENGTH:-

1. It is in the long term uptrend now. Break below 22074(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 the 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 23384----23271----23251----23128---23040----22986(figure will change every day), sustained break below this range can trigger down move again.

5. Sustained break below 22526.60 may deeply disturb the up momentum rhythm.

6. Three out of six important technical indicators are positive on the daily chart.

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

8. The price action was mixed today.

WEAKNESS:-

1. It slipped into very short correction mode as it closed below its threshold point of 23556.07. Its other important corrective threshold points are at 23369.71---23229.06---23101.72---23068.

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 23338---23260 with a stop loss of 23190 or if it moves above 23580 and maintain for some time with a stop loss of 23480, else avoid.

2. Short trade can be tried on the rise near or within the range of 23710---23730 with a stop loss of 23790 or can sell if it moves below 23450 with a stop loss of 23520. 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