A TECHNICAL UPDATE ON CNX-NIFTY-5.8.2024.

 

CNX-NIFTY

Open-24789--High-24851.90—Low—24723.70--Close-24717.70 on 2.8.2024.

Support: 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: 24854.80/24999.75/25078.30/25152/25337/25494/25551/26118.

OVERALL VIEW: --

It opened with a down gap and thereafter had both side moves during the day and finally ended the day with a loss of 293.20 points. Please note that the gap it created today is still there and if it makes an effort to fill the gap in the next 4-5 trading sessions which is technically possible then it can come up to 24956, 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. As envisaged after 5 days of straight rise it had a down day today and it slipped into correction mode for its recent rise as it closed below its few correction threshold points and other key points of 24873.57----24854.57---24841.33---24779.23 & 24774, it also fell below its few short term moving averages placed at 24790----24742(figure will change daily) with weak price action, which is a bad sign for the continuation of the up move. 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 and today’s fall was a teaser of that. Although it is below it first lair of key support points but it can still bounce back if it manages to hold these points 24701---24682----24670.42---24636.50---24588 & 24548(few figures will change daily) please note that break below each point will deepen correction and break and close below 24548 may accelerate that fall.

It is very important to mention here that the last crucial bounce back range is between 24854.80---24779.23----24670.42----24636.59----24384.30----24275&24182.24(figures may change), please note that if it moves above 24779.23 & 24854.80 and sustain on the closing basis then the up can extend, similarly moving down it can bounce back from any of the above points but  break and sustained close below 24182.24 may make the correction much deep and it could be more painful time-wise and value-wise both, which please keep in the back of your mind.

Since it is into correction mode therefore it is still sell on the rise market in general but both side trade can be tried depending on the price action for intraday gains.  

NOTE: - TO KEEP THE UP MOMENTUM ALIVE IN THE MONTH OF AUGUST-2024 IT HAS TO MOVE AND SUSTAIN ABOVE 24951.15----24999.75 & 25030.95 ON THE CLOSING BASIS. IT IS IN THE LONG TERM UPTREND AS OF NOW BUT SHORT TERM CORRECTION IS ON 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. One out of seven important technical indicators is positive on the daily chart.

5. It is below few of its short term moving averages but majorly above the others on the daily chart and the important range is between 24790----24742----24701----24682---24588----24548(figure will change every day), sustained break below this range can trigger fresh down move again.

6. Its higher top & bottom on the line & bar chart is intact as of now.

WEAKNESS:-.

1. Six 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.

4. It is into correction mode now as it is below some of its correction threshold point of 24873.57 & 24841.33. The other important correction threshold points are at ---24670.42----24636.50 & 24182.24(figures may change). Please note that break below each point will make the correction deeper.

5. The price action was very weak today.

TRADING CALL: --

1. Long trade can be tried on decline near or within the range of 24410----24385 with a stop loss of 24330 for possible pullback 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 24790--24830 with a stop loss of 24880 or can sell if it moves below 24676 with a stop loss of 24765 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