A TECHNICAL UPDATE ON CNX-NIFTY-2.8.2024.

 

CNX-NIFTY

Open-25030.95--High-25078.30—Low—24956.40--Close-25010.90 on 1.8.2024.

Support:24999.75/24854.80/24461.05/24210.80/24168.85/24141.80/24074.20/23992.65/23985.80/23667.10/23350/23338.70/23206.65/23110.80/22794.70/22768.40/22526.60/22417/2303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20.

Resistance: 25078.30/25152/25337/25494/25551/26118.

OVERALL VIEW: --

It opened on a positive note and thereafter hit a new all-time high of 25078.30 and finally ended the day with a gain of 59.75 points. It is showing extraordinary strength, it is above all its short, medium and long term moving averages with positive price action, which is a good sign for the continuation of the up move, but the straight rise for the last 5 days makes it vulnerable for short correction also and with each days rise vulnerability will increase. Furthermore it is important to mention here that the vertical rise, wild swings and volatility and most importantly few important technical indicators are still negative on the daily chart and few indicators on the weekly & monthly chart are negative and is also indicating overbought condition, which is still a concern and can drag it down sharply in the coming days. However the up move may continue provided it holds the range of 24873.57----24854.80----24841.33 & 24774.60 (figure may change) on the closing basis. Please note that break and close below 24873.57 will push it into correction mode and thereafter break and close below each point will deepen the correction and finally break and close  below each point of the range of 24782----24747---24682----24670.42---24667----24636.50---24567 & 24530(few figures will change daily) may accelerate that fall..

Since it is out of all correction modes today therefore it is a buy on decline market now in general but both side trades can be tried or attempted depending on the price action for intraday gains.  

NOTE: - TO KEEP THE UP MOMENTUM ALIVE IN THE MONTH OF AUGUST-2024 IT HAS TO SUSTAIN ABOVE 24951.15----24999.75 & 25030.95 ON THE CLOSING BASIS AND TO KEEP THE HOPE ALIVE FOR THE CONTINUATION OF THE UP IT HAS TO SUSTAINS ABOVE 24873.57---24854.80----24841.33---24774.60 ON THE CLOSING BASIS, ELSE IT MAY START TO DRIFT DOWN. IT IS IN THE STRONG LONG TERM UPTREND AS OF 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. It is in the new zone.

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

5. It is out of all corrective modes today. The important correction threshold points are at 24873.57---24841.33---24670.42----24636.50 & 24182.24(figures may change). Please note that break below each point will make the correction deeper.

6. The price action was positive today.

7. It is above all its short term moving averages on the daily chart and the important range is between 24782----24747----24682----24667---24567----24530(figure will change every day), sustained break below this range can trigger fresh down move again.

8. It has crossed its recent top on the line & bar chart both.

WEAKNESS:-.

1. Three out of seven important technical indicators have turned 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.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 25000----24960 with a stop loss of 24880 or can buy if it moves above 25042 and maintain for some time with a stop loss of 24970, else avoid.

2. Short trade can be tried on the rise near or within the range of 25120--25140 with a stop loss of 25200 or can sell if it moves below 24940 with a stop loss of 25015 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