A TECHNICAL UPDATE ON CNX-NIFTY-26.8.2024.

 

CNX-NIFTY

Open-24845.40--High-24858.40—Low---24771.65---Close-24823.15 on 23.8.2024.

Support:24638.80/24595.20/24461.05/24419.75/24210.80/24168.85/24141.80/24099.70/24074.20/23992.65/23985.80/23893.70/23667.10/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance:24854.80/24956.40/24999.75/25078.30/25152/25337/25375/25473/25494/25551/25671/25868/25967/26118/26263.

OVERALL, VIEW: --

It opened on a positive note and thereafter had both side moves in a short range during the day and finally ended the day with a meager gain of 11.65 points. The stipulated time for filling the gap of 2.8.2024 has ended but it will surely fill the gap one day (gap figure is 24956.40), which please keep in mind. Please note that it has been rising straight for the last 7days and this makes it vulnerable for a correction and the vulnerability will increase with each rising day, so correction can happen anytime soon, so be watchful henceforth. The trend is up.

The technical setup is good, it is well above its pullback threshold points of 24173.27 & 24182.24 and above all its short- and medium-term moving averages and almost all important technical indicators are positive on the daily chart, which is an extremely good sign for the continuation of the up move, and if it manages to hold the range of 24632---24608---24567---24544---24518( figure will change daily)  on the closing basis then up move can extend but even if it breaks this range but holds 24182.24 &24173.27 on the closing basis then the chances of resuming the up move will always be alive. Please note that sustained close below 24182.24 & 24173.27 will make the down move more painful price-wise & time-wise both.

It is important to mention here that although it is looking extremely good for the continuation of the up on the daily chart, but it is still into the corrective mode and it will get out of all corrective mode if it moves above 24873.57 and sustain on the closing basis, but pullback mode is also on, furthermore it is having see-saw movement every other day with huge volatility, which is not good sign for a steady market, the overbought condition on the weekly and monthly chart is still present but it neutralized on the daily chart little while ago and now again it is in the overbought territory, therefore, all indication together based on few indicators on the daily, weekly & monthly chart is pointing that it could head down again but after this up move is over. So be watchful till the indicators turn positive on the weekly and monthly chart.

Moving up from here its broad resistance points could be at 24841.38----24854.80----24873.57(some figure may change, for in between resistance points see the resistance table on the up side) it may correct at any of these points but close above each point will strengthen the up move and if it moves above 24873.57 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 24799----24626-----24567---24544-----24518-----24486------24346---24182.24---24173.27----24099.70-----24074.20---23992.70---23985.80----23893.70(few figures may change Daily) break below each point will weaken it, but break and sustained close below of 24518 may trigger fresh fall, break and close below the range of 24182.24---24173.27----24099.70-----24074.20 may accelerate the fall and thereafter break and close below the range of 23992.70---23985.80----23893.70 may trigger fresh big down move, .

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 therefore one should be extra alert in the long trade.

NOTE:-IF IT HOLDS THE RANGE OF 24632----24567----24544---24518(FIGURE MAY CHANGE DAILY), THEN THE UP MOVE IS LIKELY TO EXTEND. IT IS IN THE LONG-TERM UPTREND. SHORT AND MEDIUM TERM BIAS IS ALSO UP.

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 still has higher top & bottom on the line & bar chart in last few days’ movement.

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

5. It is above all its short-term moving averages on the daily chart and the important range for the day is between 24632---24608----24544----24521----24520---24518(figure will change every day), if it sustains above it then it is a strong sign for the continuation of the up-move.

6. It is well above its important pullback threshold point of 24173.27 & 24182.24(figure may change).  Please note that if it sustains above it on the closing basis then the up-move is likely to continue.

WEAKNESS: -.

1. One 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 correction mode now as it is below few of its correction threshold point of 24873.57 & 24841.33- (figures may change). The other important correction threshold point is 24686.18---24670.42----24637.57----24636.50 & 24182.24 (figure may change) sustained close below the threshold points is a weak sign.

5. The price action was weak today.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 24770----24740 with a stop loss of 24680 or can try long trade if it moves above 24875 and sustain for some with a stop loss of 24790 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 24990--25030 with a stop loss of 25100. 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