A TECHNICAL UPDATE ON CNX-NIFTY-7.6.2024.

 

CNX-NIFTY

Open-22798.60—High—22910.15—Low—22642.60--Close-22821.40on 6.6.2024.

Support:22820/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20/21530/21281.65/21137.20/20976.80/20769.50/20507.75/20291.55/20222.45.

Resistance:23110.80/23282/23338.70/23397/23456/23525/23573/23630/23768/23804.

It opened on a positive note and thereafter had both side swings during the day and finally ended the day with a gain of 201.05 points. After yesterday’s sharp rise it consolidated today but today’s up move also lacked volumes again, therefore I am still apprehensive whether the on-going pullback up move will sustain or not, furthermore it has retraced more than 76.40% from its recent bottom of 21281.45, and if does not move above 22885----22961---22980.53 in the next 2-3 trading sessions and sustain on the closing basis then there is a fair possibilities that the on-going pullback rally may fizzle out any time soon, so watch out. However as long as it holds 22526.60 and lastly holds its most critical range of 21821.05---21801.45---21777.65---21776.87---21731.40---21727.75 & 21710.20 the chances of up move will be alive; else it may head down again. 

STRENGTH:-

1. It is in the long term uptrend now. Break below 21900 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 well above its pullback threshold point of 21776.87(figure may change), and if it sustains above it then the possible broad upside target points could be at 22885----22961---22980.53----23110.80---23121.81----23338.70 Please note that if it moves above 22961 and sustain on the closing basis then it could retest its all-time high of 23338.70 or may go beyond it.

4. It has bounced back almost above all its short & medium  term moving averages on the daily and weekly chart, and the important range is between 22709----22647----22639---22589----22556----22526.60(figure will change every day), sustained break below this range can trigger down move again.

5. One out of five important technical indicators is positive on the daily chart.

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

WEAKNESS:-

1. It slipped into deep correction mode for its earlier and its recent rise and it will get out of all corrective mode once it moves above 22980.53---23110.80 & 23121.18 and sustain on the closing basis.

2. It has broken all tops & bottoms on the line chart and bar chart at one go on 4.6.2024.

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. 

OVERALL VIEW: -- Please note that the last two days pullback up move lacked volumes, therefore this rally is not likely to sustain, so watch out for next-1-2 trading sessions how it pans out. However as long as it holds 22526.60 and lastly holds its most critical range of 21821.05---21801.45---21777.65---21776.87---21731.40---21727.75 & 21710.20 the chances of up move may be alive.; else it may head down again.. Since it is in corrective mode therefore it is sell on the rise market now in general, but long trade can also be attempted at crucial and critical support point with strict stop loss for pullback gains.

TRADING CALL: --

1. Long trade can be tried on decline near 22754 with a stop loss of 22680 or can buy on sharp decline near 22530 with a stop loss of 22480, else avoid.

2. Short trade can be tried on the rise near or within the range of 23000---23050 with a stop loss of 23130 or can sell if it moves below 22526 with a stop loss of 22580. 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