A TECHNICAL UPDATE ON CNX-NIFTY-24.6.2024.

 

CNX-NIFTY

Open-23661.15—High—23667.10—Low—23398.20--Close-23501.10 on 21.6.2024.

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 hit a new all-time high of 23667.10 and thereafter it swung both ways during the day and finally ended the day with a loss of 65.90 points. It is exhibiting good strength but today’s move was concerning and the volatility could be a dampener in coming days and today’s move was a trailer of that, which please keeps in mind. It slipped into short correction again as it closed below its threshold point of 23558.43, furthermore is also closed below its recent bottom of 23516 on the line chart and both the developments are very concerning and it could trigger down move, if it does not bounce back above the aforesaid points in the next 1-2 trading sessions. However even if it moves down as long as it holds the range of  23469----23414----23372.08----23357----23338.70---23325---23297.55---23231.43---23228---23129----23110.80---23104.09----23070---23061(figure may change) it could bounce back from any of these points, else fall may deepen. Please note that break below its critical top of 23338.70 on the closing basis could be a deep warning sign and thereafter break below each support point 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 or mixed so far. Since it gotten into correction mode today, therefore it is selling on the rise market now, but long trade can also be tried near the critical support points for intraday pullback gains.

NOTE: - IT GOTTEN INTO CORRECTION MODE TODAY AND SUSTAINED BREAK BELOW 23338.70 & 23297.55 MAY DEEPEN CORRECTION.     

 STRENGTH:-

1. It is in the long term uptrend now. Break below 22119 (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 23469----23414----23357----23228---23129----23061(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. The price action was mixed today.

WEAKNESS:-

1. It slipped into very short correction mode today as it closed below its threshold point of 23558.43. Its other important corrective threshold points are at 23372.08---23231.43---23104.09---23070.

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

3. 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.

4. 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 23400---23340 with a stop loss of 23280, else avoid.

2. Short trade can be tried on the rise near or within the range of 23640---23670 with a stop loss of 23720 or can sell if it moves below 23390 with a stop loss of 23450. 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