A TECHNICAL UPDATE ON CNX-NIFTY-3.7.2024.

 

CNX-NIFTY

Open-24228.75—High—24236.35—Low—24056.40--Close-24123.85 on 2.7.2024.

Support:24010.10/23992/23952/23804/23768/23664/23630/23573/23481.05/23456/23441.95/23411.90/23397/23338.70/23282/23110.80/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance: 24174/24183/24236.35/24400/24500/24678/24695.

OVERALL VIEW: --

It opened on a positive note and thereafter it had both side moves during the day and in the process it hit a new all-time high of 24236.35 but finally ended the day with a meager loss of 18.10 points. It is exhibiting extraordinary strength but the vertical rise and volatility is a concern and it could prove to be a dampener in the coming days, which please keep in mind. The technical setup is great as of now and it is making higher top & bottom on the line & bar chart, therefore it is likely continue the up move provided it holds its first key range of 24027.17---24010.60---23993.31----23992.95-----23985.80----23927----23837-----23806.98--23803------23705 & 23667.10(figure may change) break below 24027.17 & 24010.10 will push it into very short correction mode for its recent rise, thereafter break below each point will deepen the correction and finally sustained break below 23667.10 will be a warning sign and may trigger fresh fall.  However even if it breaks the aforesaid range and moves down but as long as it holds the range of 23666.34----23547----23539---23505----23445-----23350----23338.70----23297.55----23206.65----23110.80(figure may change) it could bounce back from any of these points, else fall may deepen. Please note that break below its critical bottom & top of 23350 & 23338.70 on the closing basis could be a deep warning sign and thereafter break below each support point will weaken it further and pull it down 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 has been more or less consistently o.k. recently and it was positive today also. However in light of vertical rise, some weak indicators, overbought condition and volatility, it is suggested to trade the market with extreme caution and alert because it may fall in an accelerated pace in coming days Since it is out of all corrective modes it is buy on decline market now, but short trade can also be attempted on the rise at appropriate points for intraday gains.

NOTE: - TO KEEP THE UP MOMENTUM GOING IN THE MONTH OF JULY-2024 IT HAS TO MOVE ABOVE 24174 AND SUSTAIN ON THE CLOSING BASIS, ELSE IT MAY MOVE SIDE WAYS OR DRIFT DOWN.  SIMILARLY SUSTAINED, BREAK BELOW THE RANGE OF 24027.17—23993.34----23806.98 & 23667.10 MAY TRIGGER FRESH FALL. SAFE TRADERS SHOULD AVOID LONG TRADE BELOW 24010 FOR THE DAY.    

 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 23927----23837----23803----23705---23547----23445(figure will change every day), sustained break below this range can trigger down move again.

5. It has made higher top & bottom on the line & bar chart both.

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

7. It is out of all corrective mode and its important corrective threshold points are at 24027.17---23993.34---23806.98---23666.34---23539---23504.95.

8. The price action was positive today.

WEAKNESS:-

1. 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.

2. 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.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 24060---24010 with a stop loss of 23940 or can buy if it moves above 24174 and maintain for some time with a stop loss of 24110.  

 2. Short trade can be tried on the rise near or within the range of 24240---24270 with a stop loss of 24330 or can sell if it moves below 24010 or 23940 with a stop loss of 24085 & 24040 respectively. 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