CNX-NIFTY
Open-21751.35--High—21755.60—Low—21555.65--Close-21665.80
on 2.1.2024.
Support: 21607.05/21593/21505.05/21487/21472/21260.90/21078/21050/21037.90/20914.75/20751/20719/20599/20568.60/20475/20390/20291.55/20222.45/19991.85/19946/19875.25/19867.55/19849.75/19667/19645.50/19635.30/19627/19584.45/19523.40/19492.10/19480/19333.60/19329.10/19296.45/19253.60/19223.65/19204.85/18973.30/18887.60/18837.85.
Resistance: 21727.75/21731.40/21761/21801.45/21828/21834.35/21906/21974/22219/22463/22478/22590/23124/23587.
(Bold
and underlined figures are most important)
It opened on a flat to positive
note but immediately started slipping down and finally ended the day with a loss
of 76.10 points. It
is important to mention here that for the earlier gaps, the gap filling threat
on the daily chart had faded out but it is still looming on the weekly chart (gap
point 21477.15 &20291) and there is a fair chance that it may try to
fill this gap either next week starting from 1.1.2024 or week after
that, so be alert, cautious and watchful.
The overall chart setup is good but it had
down day today, please note that its
critical points are 21801.45---21731.40 & 21727.75 and to keep up the up
momentum going in the year 2024 it has to sustain above these points on the
closing basis else it may trigger correction. It closed below all the three critical points
today, which is concerning, but it has managed to close above its correction
threshold points. Please note that break below 21631.97----21583.05---21346.82
& 21127.18(figure may change) will push it into very short, deep
short, medium and long correction mode for its recent rise and break below 20222.45
could be an extreme alert point and then correction may further deepen and can
last longer. It is in the long term uptrend as of now, but it is suggested to
defer buy on decline strategy for a while and watch how this down move
culminates.
It is very important to mention here that three
out of five important technical indicators are negative now on the daily chart
and indicates that it could drag it down in coming days, furthermore price
action is also showing weak sign on and off and today it was weak, therefore
all together it is concerning. However other parameters such as chart setup,
moving average placements are o.k. as of now., therefore it can still continue
the up move as long as it holds the level of 21631.97 & 21621.45 (figure
may change) on the closing basis , else it may get into correction and
moving down its important support points could be at 21607.05---21593---21583----21507---21406---21304---21260.90---21179---21148---21122---20976.80---20950.73---20769.50(figures may change), please note that it can
bounce back from any of these points and may resume the up move again but break
sustained break below 20976.80 & 20769.50 may accelerate the fall.
Similarly moving up it may face strong resistance at 21727.75---21731.40---21761---21777---21801.45---21828---21834.35---21906--21974(figure
may change) and the up move can take a breather at any of these points and may
resume the up move again or may exhaust at any of these points also. So be
watchful.
IMPORTANT NOTE: -- THE OVERALL
TECHNICAL SETUP LOOKS GOOD FOR THE CONTINUATION OF THE UP MOVE BUT FEW
TECHNICAL INDICATORS ARE DISTINCTLY NEGATIVE WHICH IS CAUSING CONCERN AND
CANNOT BE IGNORED OR TAKEN LIGHTLY TILL IT TURNS POSITIVE, BECAUSE AS A RESULT
OF THIS IT MAY WITNESS MODERATE TO SHARP FALL ANY MOMENT AND LATEST BY
15-1-2024. SO BE ALERT, CAUTIOUS, VIGILLANT AND WATCHFUL IN THE LONG TRADE IT
HAD A DOWN MOVE TODAY.
TRADING TIPS:--
1. For safe traders long trade can be tried if it closes
above 21731.40 and sustain or can be tried if it holds 21631 &
21621 levels for some time with a stop loss of 21550. But
aggressive traders can also try long trade on decline near or within the range of
21477----21450 with a stop loss of 21400.
2. It is in the long term uptrend therefore short
trade in general could be a highly risky affair, but even then short trade can
be attempted on reasonable rise for intraday corrective gains but with extreme
caution and alert. Short trade can be tried on the rise near or within the
range of 21730—21760 with a stop loss of 21820 or sell below 21621
with a stop loss of 21728. It could be a risky trade but worth trying
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
