A TECHNICAL UPDATE ON CNX-NIFTY-21.6.2024.

 

CNX-NIFTY

Open-23586.15—High—23624—Low—23442.60--Close-23567 on 20.6.2024.

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 on a positive note and thereafter had both side moves during the day and finally ended the day with a gain of 51 points. It is exhibiting good strength but the volatility could be a dampener in coming days, which please keep in mind. It is out of corrective mode but please note that if it closes below 23516 it could be concerning and may drag it down and  break below the range of 23441----23346----23369.71----23338.70---23325---23229.06---23183---23110.80---23090---23035(figure may change) may trigger fresh fall, but as long as it holds its critical top of 23338.70  on the closing basis it could still bounce back and may resume the up move again, else break below each support point thereafter will weaken it further  and pull it down 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: - CLOSE BELOW 23516 MAY DRAG IT DOWN; THEREFORE IT IS SUGGESTED TO AVOID LONG TRADE BELOW 23516 FOR THE DAY.     

 STRENGTH:-

1. It is in the long term uptrend now. Break below 22096 (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 23441----23346----23325----23183---23090----23035(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.

9. It is out of all corrective modes and the important corrective threshold points are at 23556.07---23369.71---23229.06---23101.72---23068.

WEAKNESS:-

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 23522 with a stop loss of 23440 or can buy if it moves above 23624 and maintain for some time with a stop loss of 23550, 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 23440 with a stop loss of 23530. 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