A TECHNICAL UPDATE ON CNX-NIFTY-6.8.2024.

 

CNX-NIFTY

Open-24302.85--High-24350.05—Low—23893.70--Close-24055.60 on 5.2024.

Support: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:24074.20/24141.80/24168.85/24210.80/24461.05/24854.80/24999.75/25078.30/25152/25337/25494/25551/26118.

OVERALL VIEW: --

It opened with a down gap for the 2^nd day in a row and then most of the time drifted down during the day and finally ended the day with a whopping loss of 662.10 points. The gap it created today and on 2.8.2024 is still there and if it makes an effort to fill the gap of 2.8.2024 & 5.8.2024 in the next 3--4 & 4-5 trading sessions which is technically possible then it can come up to 24686.85 & 24956.40, 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. Please note that eventually volatility, wild swings, vertical rise and overbought condition has come into play and it had a devastating fall, today. The days fall has jolted the technical setup; therefore it seems that it may go down further from here. It has slipped into deep correction mode today for its recent rise , furthermore it is also below all its short term moving averages and few medium term moving averages on the daily chart and below few short term moving averages on the weekly chart also. Furthermore 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 23992.70---23985.80----23757----23695----23667.10---23627.90---23450---23350---23338.70---23284----23180---23110.80---22732---22178----22040, it may bounce back from any of these points , but break and close below 23695---23667 & 23627.90.10 may accelerate the fall further and thereafter break  and close below each point will weaken it further.

Similarly moving up its broad resistance points would be at 24173.27---24182.24---24346.22---24486—24626---24672-----24799----24854.80(some figure may change, for in between resistance points see the table on the up side), if it moves above 24173.27 & 24182.24 and sustain on the closing basis then there will be some ray of hope that it may have an up move and if it moves above 24672 and sustain on the closing basis then it may get into up momentum track again, else down move may continue. Please note that sustained close below 24182.24 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 risky affair.

NOTE: - IF IT HOLDS THE RANGE OF 23992.70 & 23985.80 IT CAN BOUNCE BACK, ELSE FALL MAY CONTINUE AND THEN THE NEXT POTENTIAL BOUNCE BACK RANGE COULD BE 23695—23667.10 & 23627.90. IT IS IN THE LONG TERM UPTREND. BUT SHORT TERM TREND IS BEARISH NOW.  

ON 6.8.2024 IF IT OPENS BELOW 23893.70 AND GO DOWN FURTHER THEN THERE IS GOOD CHANCE OR A POSSIBILITY OF A REASONABLE BOUNCE BACK IN THE LATER HALF.

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. .

WEAKNESS:-.

1. All the 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 deep correction mode now as it is below all its correction threshold point of 24873.57---- 24841.33----24670.42----24636.50 & 24182.24(figures may change).  Sustained close below 24182.24 will make the correction deeper.

5. The price action was very weak today.

6. It is below all its short term moving averages on the daily chart and the important range for the day is between 24672----24657----24631----24574---24502----24502(figure will change every day), sustained break below this range can deepen the down move.

7. It has broken its recent bottom on the line & bar chart.

TRADING CALL: --

1. Safe traders should avoid long trade till it closes above 24182.24, however aggressive traders can try long trade on decline near or within the range of   23695---23627 with a stop loss of 23550 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 24250--24350 with a stop loss of 24410 or can sell if it moves below 23985 with a stop loss of 24060 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