CNX-NIFTY
Open-22821.85—High—23320.20—Low—22789.05--Close-23290.15 on
7.6.2024.
Support:23282/23110.80/22794.70/22775.20/22526.60/22417/22303.80/22297/22224.35/22126.80/21860/21821.05/21801.45/21777.65/21731.40/21727.75/21710.20/21530/21281.65/21137.20/20976.80/20769.50/20507.75/20291.55/20222.45.
Resistance: 23338.70/23397/23456/23525/23573/23630/23768/23804.
OVERALL VIEW:
--
It opened on a flat note and went down
slightly lower and thereafter gradually moved up and finally ended the day with
a handsome gain of 468.75 points. It got out of all corrective mode today, which is a
positive sign Please note that after the vertical fall on 4.6.2024 in
the last three days it bounced back vertically and retraced almost 100%
of the recent entire fall, the on-going up move was good and showed strength
but lacked volumes which is slightly concerning, furthermore despite the
vertical rise the technical indicators has weakened further on the daily &
weekly chart, which is a very weak sign. Therefore please note that if it moves
above its all-time high of 23338.70 with good volumes and sustain above
it on the closing basis then the on-going up move may extend, else this rally
may fizzle out. However as long as it holds the range of 23121.18---23110.80---22980.53
& 22961(figure may change) on the closing basis chances of continuation
of the up move will be alive, but break below this range could be a warning
sign and finally sustained break below the range of 22757----22742----22717----22689---22656---22618---22526.60
will trigger fresh fall and it could be moderate to
sharp in the intensity. So be watchful at this point of time. Since it is out of all corrective
mode it is buy on decline market now, but short trade can also be attempted on
the rise at appropriate points for intraday gains. In light of the huge
volatility traders should be extremely alert and cautious in the both side
trades.
STRENGTH:-
1. It is in
the long term uptrend now. Break below 21921(figure will change every day)
will threaten the long term uptrend.
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 well above its pullback
threshold point of 21776.87(figure may
change), and now it is likely to retest its all-time high of 23338.70 or may go beyond it also as
long as it holds 22961.
4. It is above all its short
& medium term moving averages on the
daily and weekly chart, and the important range is between 22757----22742----22717----22689---22656---22618---22526.60(figure will
change every day), sustained break below this range can trigger down move
again.
5. One out of five important
technical indicators is positive on the daily chart.
6. The price action has been mixed
for the last few days and today it was positive.
7. It is out of all corrective modes
now. The correction threshold points are 23121.78---22980.53---22839---22819.75(figures
may change).
8. It has crossed its recent top 23263.90 on the line chart.
WEAKNESS:-
1. Some important technical
indicators are weak on the daily/weekly and monthly charts and pointing that it
could head down to lower levels in coming days/weeks and months.
2. Volatility 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 23157----23110 with a stop loss of 23060 or can buy on sharp decline near 22790 with a stop loss of 22700 or can buy if it moves above 23338.70 and maintain for some time with a stop loss of 23260, else avoid.
2. Short trade can be tried on the rise near or within the range of 23575---23650 with a stop loss of 23700 or can sell if it moves below 23060 with a stop loss of 23130 or can sell if it does not move above 22338.70 in first one and half hour of trade even intraday with a stop loss of 23280. 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
