2 2 2
CNX-BANK NIFTY
Open—52560.10--High—52817.85--Low—52290.05---Close—52660.35 on
5.7.2024.
Support:52351.15/52342.25/51996.65/51957/51138.90/51133.20/50252.95/49974.75/49530.45/49057.40/48636.45/48313.60/48292.25/48203.45/48161.75/47435.75/46983.75/46579/46077.85.
Resistance:53180.75/53357.70/53477/53503/53575/53633/53773/53913/53970/54070/54139/54257/54365/54604/54815/55097.
OVERALL VIEW: --
It opened on a huge negative note and thereafter had both
side moves during the day and finally ended the day with a loss of 443.35
points. The chart setup is still good but the volatility and overbought
condition is still a concern, furthermore it slipped into short correction mode
today as it closed way below its threshold point of 53036.49 and also below some other important points of 52834.06---52697 and closed below the low of the previous day today after a
long time, so all together it showed some weakness and this could drag it down
in coming days, so it is down now but not out. However if it manages to hold
its balance first key support range point of 52592----52454.47----52409-----52268.86----52167.20-----52151-----51996.65
& 51957 (figures may change) on the closing basis then it
could still stage a bounce back from any of these points and may resume the up
move, but it is into correction mode and sustained break below 51996.65 & 51957 may accelerate the
fall. It is important to mention here
that even if it breaks the above
mentioned range, but moving down as long as it holds the range of 51853.33-----51642----51639.66-----51512----51351.15----51342.25-----51250.53-----51133.20(figures may change) the chance of the up move will still be alive but sustained
break below 51512 will signal that a big fall may be in the offing,
break below 51351.15 & 51342.25 will confirm the fall and sustained
break below 51133.20 may accelerate the fall and finally sustained break
below the range of 48636.45---48351---48292.25 &48203.45 will trigger fresh fall and it could
be moderate to sharp in the intensity and will threaten the long term uptrend.
It is important to mention here some important technical indicators on the
daily, weekly and monthly chart are showing overbought condition, which
indicates that it may deeply correct and may head for 51661 or much lower levels 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 was terribly weak today, so keep an
eye on the price action for further direction. Since it gotten into correction mode today 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: - TO KEEP THE UP MOMENTUM
GOING-ON IN THE MONTH OF JULY-2024 IT HAS TO MOVE ABOVE 53180.75 AND SUSTAIN ON
THE CLOSING BASIS, ELSE IT MAY MOVE SIDE WAYS OR DRIFT DOWN. SUSTAINED BREAK
BELOW 51996.65 & 51957 MAY ACCELERATE THE FALL.
STRENGTH:-
1. It is in
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.
3. It is in
the new zone.
4. It is
above all its short, medium and long term moving averages on the daily and
weekly chart, and the important average range for today is between 52697----52592----52405----52151---51642---51512(figure will change every day), sustained break below this range can trigger down
move.
5. Five out
of seven important technical indicators are positive on the daily chart.
6. It still has
higher top & bottom on the line and bar chart.
WEAKNESS:-
1. The price
action was positive today.
2. It slipped
into correction mode today as it closed below its threshold point of 53036.49
& 52834.06, the other important correction threshold points are at ---52454.47-----52167.29---51853.33----51639.66----51250.53(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.
TRADING CALL: --
1. Long trade can be tried on decline near or within
the range of 52270----52170 with a stop loss of 51980, else avoid.
Please note that long trade in a corrective market could be a risky affair.
2. Short
trade can be tried on the rise near or within the range of 53050---53180 with
a stop loss of 53380 or can sell below 52500 with a stop loss of 52700.
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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