A TECHNICAL UPDATE ON CNX-NIFTY-26.6.2024.

 

CNX-NIFTY

Open-23577.10—High—23754.15—Low—23562.05--Close-23721.30 on 25.6.2024.

Support:23664/23630/23573/23481.05/23456/23441.95/23411.90/23397/23338.70/23282/23110.80/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20/21530/21281.65/21137.20/20976.80/20769.50/20507.75/20291.55/20222.45.

Resistance: 23768/23804/23952/24183/24678/24695.

OVERALL VIEW: --

It opened on a positive note and thereafter steadily moved up and hit a new all-time high of 23754.15 and finally ended the day with a gain of 183.45 points. It is exhibiting good strength but the volatility is concerning and could prove to be a dampener in the coming days, which please keep in mind. It is out of corrective mode and made higher top on the line & bar chart , therefore it is likely continue the up move provided it holds its key range of 23667.10---23658.77---23625(figure may change) break below this range could trigger correction   However even if it moves down but as long as it holds the range of 23543----23485----23450---23350----23338.70----23333----23297.55---23221----23206.65----23170----23130---23110.80(figure may change) it could bounce back from any of these points, else fall may deepen. Please note that break below its critical bottom & top of 23350 & 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 23110.80 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 was positive today. 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: - SUSTAINED BREAK BELOW 23667.10---23658.77 & 23625 MAY TRIGGER CORRECTION AGAIN, ELSE UP MOVE MAY CONTINUE.    

 STRENGTH:-

1. It is in the long term uptrend now.   

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 23543----23485----23450----23333---23221----23130(figure will change every day), sustained break below this range can trigger down move again.

5. It has made higher top on the line & bar chart both.

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

7. It is out of all corrective mode and its important corrective threshold points are at 23658.77---23625---23438.58---23297.94---23170.59---23136.

8. 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 or within the range of 23667---23600 with a stop loss of 23550 or can buy if it moves above 23769 and maintain for some time with a stop loss of 23690.  

 2. Short trade can be tried on the rise near or within the range of 23870---23900 with a stop loss of 23950 or can sell if it moves below 23500 with a stop loss of 23570. 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