A TECHNICAL UPDATE ON CNX-NIFTY-12.7.2024.

 

CNX-NIFTY

Open-24396.55--High-24402.65—Low—24193.75--Close-24315.95 on 11.7.2024.

Support:24174/24168.85//23992.65/23985.80/23667.10/23398/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance:24401/24464/24490/24517/24545/24575/24633/24678/24695/24749/24777/24865/25152.

OVERALL VIEW: --

It opened on a positive note and thereafter had wild swings both ways during the day and finally ended the day with a meager loss of 8.50 points. The overall technical chart structure is still showing good strength but the vertical rise, wild swings and volatility is still a concern and it could drag it down sharply in the coming days, furthermore it slipped into short correction mode today for its recent rise as it closed below its threshold points of 24392.09 & 24348.89. The technical chart setup is still good despite today’s volatility but is showing some fatigue now as it has broken its recent bottom on the line chart today, which is a weak sign. However  it can still continue the up move provided it holds its balance support points of the first key range of 24310----24258----24212----24198.84----24168.85-----24165.01-----24126----23942-----23938-----23710.66---23667.10(figure may change)  it is already into mode for its recent rise, close below  24168.85 may accelerate the fall , sustained break below 23985.80 & 23938 may confirm that a big fall may be ahead and finally sustained break below 23667.10 may further accelerate the fall. It is important to mention here that even if it breaks the above mentioned range a glimmer of hope is still there that it can still bounce back provided it holds the range key support points of 23350----23338.70----23297.55----23206.65----23110.80(figure may change), else fall may deepen. Please note that break below its critical bottom & top of 23350 & 23338.70 on the closing basis can pull it down further and finally sustained break below 23110.80 may accelerate the fall. It is important to mention here that despite the recent rise some important technical indicators on the daily, weekly and monthly charts are still weak and showing overbought condition also, which indicates that it may deeply correct in the 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 mixed 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: - IT CLOSED BELOW 24320.55 IS AWEAK SIGN AND IT CAN DRAG IT DOWN & CLOSE BELOW 24168.85 MAY ACCELERATE THE FALL.

 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 zone.

4. It is above all its short & medium  term moving averages on the daily and weekly chart, and the important range is between 24310----24258----24212----24126---23942----23938(figure will change every day), sustained break below this range can trigger down move again.

6. Three out of seven important technical indicators are positive on the daily chart.

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WEAKNESS:-

1. It slipped into correction mode today as it closed below its threshold point of 24392.09 & 24348.89, the other important correction threshold points are at 24198.84----24165.01----23978.65----23838.01----23710.66---23676.62(figures may change). Please note that break below each point will make the correction deeper.    

2. The price action was mixed today.

3. It has broken its recent bottom on the line & bar chart both.

4. 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.

5. 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 24217 with a stop loss of 24130, else avoid.

2. Short trade can be tried on the rise near or within the range of 24400---24420 with a stop loss of 24475 or can sell if it maintain below 24300 for some time with a stop loss of 24375. 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