A TECHNICAL UPDATE ON CNX-NIFTY-4.6.2024.

 

CNX-NIFTY

Open-23337.90—High—23338.70—Low—23062.30--Close-23263.90 on 3.6.2024.

Support: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.

Resistance:23282/23397/23456/23525/23573/23630/23768/23804.

It opened with a huge up gap and went up further and hit a new all-time high of 23338.70 and stood firm during the day and finally ended the day with a whooping gain of 733.20 points. Please note that the gap it created today is still there and if it makes an effort to fill the gap in the next 4-5 days which is technically possible then it can come down to 22653, but if it fails to fill the gap in the stipulated time then the chances of filling the gap will recede for the time being but eventually it will fill the gap some day. Kindly note that over the next 1-2 trading session it has to be seen that whether it will sustain today’s up move or not, however as long as it holds these points 23121.18---23110.80 & 22980.53 chances of continuation of the up move will be there.   

NOTE:-HUGE VOLATILITY IS EXPECTED IN THE MARKET ON 4.6.2024 IN WAKE OF THE ELECTION RESULT, SO BE EXTREMELY ALERT AND CAUTIOUS IN YOUR TRADES. FOR SAFE TRADERS IT IS SUGGESTED STAY OUT OF THE MARKET FOR THE DAY.

STRENGTH:-

1. It is in the long term uptrend now. Break below 21848 will threaten the long term uptrend.   

2. It is well above its critical points of 21821.05---21801.45---21777.65---21731.40---21727.75 & 21710.20, which is must to keep the up momentum going in the year 2024.

3. It is well above its all short term moving averages on the daily &  weekly  chart and the important range of averages is between 22812---22786---22751--22666---22630----22526.60----22518 (figures will change every day) for the day, sustained close below this range may witness an accelerated fall.

4. It is well above its correction threshold point of 23121.18 & 22980.53(figure may change) for its very recent rise and as long as it holds these points on the closing basis it is likely to continue the up move ,else it will slip into correction mode and can drift down.

5. Moving down the possible good bounce back support point could be at 23121.18---23110.80---22980.53---22878----22758----22634----22580---22526.6---22400---22180----22126.80---22124.58----21860----21848----21821.05----21777.65----21710.20(figures may change), break below 23121.18 will push it into correction mode, break below 23110.80 will be an alert sign, break below 22980.53 will push it into deep correction mode, thereafter break below each point will weaken it further, break below  22526.60 may end the up momentum, sustained break below 21848 will threaten the long term uptrend, sustained break below  22124.58 can pull it down to 21821.05 & 21777.65  levels and finally sustained break below these points could be an ultimate warning sign and can drag it down to devastatingly lower levels in coming days and may make the correction more painful time wise and value wise both, which may please be noted. So 21848---21821.05 & 21777.65 is a very strong and may be the last bounce back support points as of now or make or break point or benchmark points. So be watchful.

6.  Four out of five important technical indicators are positive on the daily chart.

7. It has been making higher top and bottom on the line and bar chart recently.

8. The price action has been mixed for the last few days and today it was positive.

9. It is in the new zone.

WEAKNESS:-

.1. Some technical indicators are still weak on the daily/weekly and monthly charts and pointing that it could head down in the coming days, weeks and months, so be watchful.

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.

OVERALL VIEW: -- It had a massive rise today showing good strength but the huge gap up is a concern, therefore it has to be seen over next 1-2 days trading sessions whether it can hold this rise or not, however as long as it holds the range of 23121.18---23110.80 & 22980.53 chances of continuation of the up move will be there, else it may get into correction mode. It is in the new zone now, therefore it is a buy on decline market in general, but short trade can also be attempted on the reasonable rise with strict stop loss for intraday corrective gains. It could be a risky affair but worth trying.  

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 23121---23110 with a stop loss of 23030, else avoid.

2. Short trade can be tried on the rise near or within the range of 23480---23510 with a stop loss of 23550 or can sell if it moves below 23030 with a stop loss of 23130. 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