A TECHNICAL UPDATE ON CNX-NIFTY-29.7.2024.

 

CNX-NIFTY

Open-24423.35--High-24861.15—Low—24410.90--Close-24834.85 on 26.7.2024.

Support:24461.05/24168.85/24141.80/23992.65/23985.80/23667.10/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance:24854.80/24861.15/24865/24978/25067/25152/25337/25494/25551/26118.

OVERALL VIEW: --

It opened on a positive note and thereafter steadily moved up during the day and hit a new all time high of 24861.15 near the fag end of the day and finally ended the day with a robust gain of 428.75 points. As envisaged and expected after 5 days of straight fall it staged a very sharp bounce back today and got out of all corrective mode, decisively moved above all the short term moving averages with positive price action, which is a good sign for the continuation of the up move. But it is important to mention here that the vertical rise, wild swings and volatility and most importantly major important technical indicators are still negative on the daily chart and few indicators on the weekly & monthly chart is also indicating overbought condition, which is still a concern and can drag it down sharply in the coming days. However the up move may continue provided it holds the range of 24707.67----24698.68 & 24675.43 on the closing basis. Please note that break and close below the aforesaid points will push it back into the correction mode  and finally break below the range of 24567---24565---24523---24504---24499---24470.69----24412 & 24338(few figures will change daily) may accelerate that fall, break below each point will deepen the correction.

Since it is out of all correction modes today therefore it is a buy on decline market now in general but both side trades can be tried or attempted depending on the price action for intraday gains.  

NOTE: - IF IT HOLDS THE RANGE OF 24707.67--24698.68 & 24675.43 ON THE CLOSING BASIS THE UP MOVE MAY CONTINUE. IT IS IN THE STRONG UPTREND.   

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

5. It is out of all corrective modes today. The important correction threshold points are at 24707.67---24675.43---24504----24470.69 & 24016.34(figures may change). Please note that break below each point will make the correction deeper.

6. The price action was positive today.

7. It is above all its short term moving averages on the daily chart and the important range is between 24567----24565----24523----24499---24412----24338(figure will change every day), sustained break below this range can trigger fresh down move again.

8. It has crossed its recent top on the line & bar chart both.

WEAKNESS:-.

1. Five out of seven important technical indicators have turned negative on the daily chart    

2. 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.

3. 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 24721----24700 with a stop loss of 24650 or can buy if it moves above 24861.15 and maintain for some time with a stop loss of 24800, else avoid.

2. Short trade can be tried on the rise near or within the range of 25175---25225 with a stop loss of 25300 or can sell if it moves below 24650 with a stop loss of 24730 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