2 2 2
CNX-BANK NIFTY
Open—52511--High—52547.55--Low—51342.65---Close—51778.30on
23.7.2024.
Support:51749.45/51138.90/51133.20/49974.75/49530.45/49057.40/48636.45/48313.60/48292.25/48203.45/48161.75/47435.75/46983.75/46579/46077.85.
Resistance: 51957/51996.65/52246.70/52342.25/52351.15/52794.55/53180.75/53357.70/53477/53503/53575/53633/53773/53913/53970/54070/54139/54257/54365/54604/54815/55097.
OVERALL VIEW: --
It opened on a big positive note but did not move much higher
after that and thereafter steadily moved down and finally ended the day flat with
a loss of 502.10
points. The chart setup has terribly weakened as it closed below it first critical
key support range of 53036.49----52834.06---52454.47----52484---52458----52376---52373---52369------52103----51996.65----51957----51818.20
(figures may change), furthermore , it is already into short
correction mode for its recent rise as it is way below its correction threshold
points, it has also moved below all its short term moving averages today and
below few medium term moving averages also and all the important technical indicators have turned
negative on the daily chart, so all together it is showing gross weakness and
pointing that it could head down further in coming days. Please note that if it moves above 51818.20 (figure may change) and
sustain on the closing basis then the chances are that it may resume the up
move again but it will gain strength only if it moves above 52490(figure will
change daily) and sustain on the closing basis, else down move may continue.
It is important to mention here that
even now there is a bleak chance that it could still bounce back provided it
holds 51639.66 & 51133.20(figures may change) but sustained
break and close below 51639.66 will signal that a big correction may be ahead, sustained break below 51133.20 may
accelerate the fall further, break and close below 48924 will threaten
the long term uptrend and finally sustained break and close below the range of 48636.45---48292.25
&48203.45
will trigger fresh fall and it could be sharp in the intensity and could be
painful time-wise and price-wise both. I once again repeat that all the important
technical indicators on the daily chart have turned weak and some indicators on
the weekly and monthly chart are also weak and showing overbought condition,
which indicates that it may deeply correct in the coming days/week/months, 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 is not consistent off late and it was
very weak today, so keep an eye on the price action for further direction. Since it is into correction mode therefore
it is sell on the rise market in general but both side trade can be tried
depending on the price action for intraday gains.
NOTE: - IF IT MOVES ABOVE 51818.20---51957 & 51996.65 AND SUSTAIN ON
THE CLOSING BASIS THEN IT MAY RESUME THE UP MOVE AGAIN, ELSE DOWN MOVE MAY
CONTINUE.
STRENGTH:-
1. It is in
the long term uptrend, but break below 48924 will threaten the long term
uptrend.
2. It is well
above its most critical points of 48203.45---48292.25 & 48636.45, please note that it must stay above all these
points to keep up the strong up momentum going in the year 2024.
WEAKNESS:-
1. The price
action was weak today.
2. It is already into correction mode as it is below
its threshold point of 53036.49---- 52834.06 & 52454.47(figure may
change), the other important correction threshold point is at 51639.66(figures
may change). Please note that break below each point will make the correction
deeper.
3. Some important
technical indicators are weak and overbought on the daily/weekly and monthly chart
and pointing that it could head down in the coming days/weeks and months.
4. Volatility
and wild swing 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.
5. All the
seven important technical indicators are negative on the daily chart now.
6. It is below
almost all its short term moving averages now on the daily chart and the
important average range for today is between 52488---52391----52311----52265----52261---52073(figure will change every day), sustained break below this range can trigger big
down move.
7. It has
made lower bottom on the line & bar chart.
8. It is
below its pullback threshold point of 51818.20(figure may change).
Please note that if it moves above it and sustain on the closing basis then it
could possibly move ahead further, else down move may continue..
TRADING CALL: --
1. Long trade can be tried on decline near 51477
with a stop loss of 51300, else avoid. Please note that long trade in a
corrective market could be a risky affair but can be tried near critical support points for intraday gains.
2. Short
trade can be tried on the rise near or within the range of 52250---52350 with
a stop loss of 52560 or can sell if it moves below 51600 with a stop
loss of 51800. 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
Email—suranank@gmail.com
Mobile—8240951127/9831313654.
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