2 2 2
CNX-BANK NIFTY
Open—50051.90--High—50440.75--Low—49829.60---Close—50156.70
on 8.8.2024.
Support:49974.75/49659.05/49530.45/49057.40/48636.45/48313.60/48292.25/48203.45/48161.75/47435.75/46983.75/46579/46077.85.
Resistance:50438.20/51133.20/51138.90/51749.45/51957.75/51996.65/52340.25/52547.55/52782.75/52794.95/52817.85/53180.75/53357.70/53477/53503/53575/53633/53773/53913/53970/54070/54139/54257/54365/54604/54815/55097.
OVERALL VIEW: --
It opened on a negative note and thereafter had both side
moves and finally ended the day with a meager gain of 37.70 points, it had an up move
for the last 2 days which is a very
normal bounce back after such a big fall, so the weakness still persist.
The gap it created on 5.8.2024 is still there and if it makes
an effort to fill the gap in the next 1-2
trading sessions which is technically possible then it can come up to 51087.85, but if it fails to fill the
gap in the stipulated time then the chances of filling the gap will recede for
the time being but one day if will fill the gap for sure, which please keep in
mind. The technical setup is weak, furthermore the volatility is still there
and the overbought condition on the weekly and monthly chart is also present but
it has neutralized on the daily chart to some extent, therefore it seems that
it may go down further from here may be with in- between short relief rallies. It
is already into deep correction mode for its recent rise and also into
correction for the earlier rise; furthermore it is below all its short term
moving averages on the daily & below few on the weekly chart and also below
few medium term moving averages on the daily chart. Furthermore almost all
important technical indicators are negative on the daily chart and few on the
weekly & monthly chart are also negative, pointing that the down move is
likely to continue. Moving down from here it may find good support at 49850----49717.78----49659----49530----49384----49346-----49156-----49042---48853.755----48636.45---48292.25---48203.45---47795.89----47533.83(figures
may change),
it may bounce back from any of these points but break below 49346 will threaten the long term uptrend and
finally sustained break and close below the range of 48636.45---48292.25
&48203.45
will trigger fresh fall and that could be sharp in the intensity and then the
correction could be more painful time-wise and price-wise both. Sustained close
below 47533.83 can drag it
down to 46077 or lower.
Similarly moving up it will face strong resistance at 50292—50532---50683---51000---51072---51316---51508---51569-----51553.40---51639.66---51672.60----51708----51804----51945----52340----52485----52618(some
figure may change), if it moves above 50292
& 50532 and sustain on the closing basis then there will be some ray of
hope that it may have a reasonable up move and if it moves above 51467 & 51639.66 and sustain on the closing basis then it may get into the up momentum track again , else down move may continue.
Since it is into correction mode therefore
it is still sell on the rise market and sell on the price breakdown in general
but both side trades can be tried depending on the price action for intraday
gains. Please note that since it is into deep correction mode therefore buy
trade could be a risky affair.
NOTE: - BREAK BELOW 49659 MAY TRIGGER FRESH FALL AND TO KEEP THE HOPE OF UP
MOMENTUM ALIVE IN THE YEAR 2024 IT HAS TO STAY ABOVE 48636.45---48292.25 &
48203.45 ON THE CLOSING BASIS, ELSE IT MAY WINTESS AN ACCELERATED FALL. THE
LONG TERM UPTREND IS STILL INTACT BUT SHORT TERM TREND IS BEARISH AS OF NOW.
STRENGTH:-
1. It is in
the long term uptrend now, but break below 49346 will threaten 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. The price
action was positive today.
WEAKNESS:-
1. It is already into deep correction mode now as it is
below all its important correction threshold point of 53036.49---- 52834.06----52454.47---52167.20---51891.39---51853.33--- 51639.66----51250.53-----50702.16 & 49878(figure may change), which is a very weak sign.
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.
4. All the
seven important technical indicators are negative on the daily chart now.
5. It is below
all its short term moving averages now
on the daily chart and the important average range for today is between 51467---51148----51054----50878----50733---50582(figure will change every day), sustained break below this range can deepen
the down move.
6. It still has
lower top & bottom on the line & bar chart.
7. It is well
below its pullback threshold point of 50292 & 50532 (figure may
change). Please
note that if it moves and sustains above it on the closing basis then it could
possibly move ahead further, else down move may continue.
TRADING CALL: --
1. Safe traders should avoid long trade till it
closes above 50532; however aggressive traders can try long trade on decline
near 49830 with a stop loss of 49700 for possible intraday gains,
else avoid. Please note that long trade in a corrective market could be a
risky affair but can be tried
near critical support points for intraday gains.
2. Short
trade can be tried on the rise near or within the range of 50600---50700 with
a stop loss of 50800 or can sell if it moves below 49720 with a
stop loss of 49850. 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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