A TECHNICAL UPDATE ON CNX-NIFTY-9.7.2024.

 

CNX-NIFTY

Open-24329.45--High-24344.60—Low—24240.55--Close-24320.55 on 8.7.2024.

Support:24174/24010.10/23992.65/23985.80/23667.10/23398/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance: 24401/24500/24678/24695.

OVERALL VIEW: --

It opened on a flat to positive note and thereafter had both side moves in a short range during the day and finally ended the day flat with a meager loss of 3.30 points. The overall technical chart structure is exhibiting extraordinary strength but the vertical rise, wild swings and volatility is still a concern and it could drag it down in the coming days, which please keep in mind. The technical setup is good as of now , therefore it is likely continue the up move provided it holds its first key range of 24303.01----24211----24174---27168.85----24152.96---24123.85-----24119.13-----24114----24098---24010.60-----23992.95-----23985.80-----23932.78-----23976-----23798----23792.1& 23776----23667.10(figure may change)  break below 24303.01 will push it into short correction mode for its recent rise sustained break below 24174 & 24168.85 will be an alert sign for an impending fall, sustained break below 24123.85 may trigger fall, sustained break below 24010.60 & 23985.80 may confirm that a big fall may be ahead and  thereafter break below each point will deepen the correction and finally sustained break below 23725 & 23667.10 may accelerate the fall. It is important to mention here that its last key support points range is between 23350----23338.70----23297.55----23206.65----23110.80(figure may change) and if it holds this range chances of bounce back could  still be alive 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 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 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 SUSTAIN ABOVE 24174 ON THE CLOSING BASIS ELSE IT MAY START TO DRIFT DOWN. IT IS SUGGESTED TO AVOID LONG TRADE FOR THE DAY IF IT SUSTAINS BELOW 24309 AND BELOW 24174 FOR SURE.

 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 24211----24114----24098----23976---23798----23776(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.  Five out of seven important technical indicators are positive on the daily chart.

7. It is out of corrective mode and its  important corrective threshold points are at 24303.01----24152.96---24119.13---23932.78---23792.13---23664.79---23630.74..

WEAKNESS:-

1. The price action was mixed today

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 24216----24174 with a stop loss of 24120, else avoid.

2. Short trade can be tried on the rise near or within the range of 24380---24400 with a stop loss of 24460 or can sell if it moves and maintain below 24285 for some time with a stop loss of 24350. 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