A TECHNICAL UPDATE ON CNX-NIFTY-13.8.2024.

 

CNX-NIFTY

Open-24320.05--High-24472.80—Low24212.10---Close-24347 on 12.8.2024.

Support:24210.80/24168.85/24141.80/24074.20/23992.65/23985.80/23667.10/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance:24419.75/24461.05/24854.80/24999.75/25078.30/25152/25337/25494/25551/26118.

OVERALL VIEW: --

It opened on a negative note and thereafter had both side moves during the day but finally ended the day with a loss of 20.50 points. Please note that the stipulated  time for filling the gap of 2.8.2024 & 5.8.2024 has ended but it will surely fill the gap one day  (gap figure is 24686.85 & 24956.40), which please keep this in mind. The technical setup is slightly weak, it is having see-saw movement every other day with huge volatility, which is not good sign for a steady market, furthermore 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 can move in a range or move up for some time and then may go down further may be with in-between short relief rallies. It is already into the correction mode for its recent rise, furthermore it is also below almost all its short term moving averages and 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 be resumed after some time. But the good point is that it is well above its pullback threshold points of 24173.27 & 24182.24, which is a positive sign and if it stays above it on the closing basis then the up move can extend.

Moving up from here its broad resistance points would be at 24368---24486—24537-----24626-----24799----24841.38----24854.80(some figure may change, for in between resistance points see the table on the up side), it may correct at any of these points but if it moves above  24537 and sustain on the closing basis then it may get into the up momentum track again and finally if it moves above 24854.80 and sustain on the closing basis, then it could retest its all-time high of 25078.30 or may go beyond it also.

Similarly moving down from here it may find good support at 24182.24---24173.27---24074---23992.70---23985.80----23757----23695----23667.10---23627.90---23450---23350---23338.70---23284----23180---23110.80---22732---22178----22040, please note that if it sustains above 24182.24 & 24173.27 on the closing basis then the up move can extend, else it may resume the down move again,  break and close below 23992.70 & 23985.80 may trigger fresh fall, break and close below the range of 23695---23667.10 & 23627.90 may accelerate the fall further and thereafter break and close below each point will weaken it further. Please note that sustained close below 24182.24 & 24173.27 will make the on-going correction more painful price-wise & time-wise both.

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 slightly risky affair.

NOTE: - IF IT HOLDS THE RANGE OF 24182.24---24173.27 ON THE CLOSING BASIS THEN THE UP MOVE CAN EXTEND FURTHER; ELSE IT MAY RESUME THE DOWN MOVE AGAIN. IT IS IN THE LONG TERM UPTREND, BUT IT IS IN CORRECTIVE MODE NOW.  

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. The price action was mixed today.

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

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

WEAKNESS:-.

1. Six out of seven important technical indicators are 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.

4. It is into deep correction mode now as it is below almost all its correction threshold point of 24873.57----24841.33----24670.42 & 24636.50 (figures may change). The other correction threshold point is 24182.24(figure may change) and sustained close below 24182.24 will make the correction deeper and painful.

5. It is below almost all its short term moving averages on the daily chart and the important range for the day is between 24537----24475----24472----24399---24388----24339(figure will change every day), sustained close below this range can deepen the down move.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 24182.24 & 24173.27 with a stop loss of 24100 or if it moves above 24370 and maintain for some time with a stop loss of 24300 for a 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 24580--24600 with a stop loss of 24670 or can sell if it moves below 24100 with a stop loss of 24200 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