CNX-NIFTY
Open-21605.80--High—21685.65—Low—21564.55--Close-21658.60
on 4.1.2024.
Support: 21607.05/21593/21579.20/21505.05/21487/21472/21260.90/21078/21050/21037.90/20914.75/20751/20719/20599/20568.60/20475/20390/20291.55/20222.45/19991.85/19946/19875.25/19867.55/19849.75/19667/19645.50/19635.30/19627/19584.45/19523.40/19492.10/19480/19333.60/19329.10/19296.45/19253.60/19223.65/19204.85/18973.30/18887.60/18837.85.
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 positive note
and went up further and finally ended the day with a gain of 141.25 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 .and after two
days of down day it staged a bounce back
today, but 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 is still below all
the three critical points but the good thing is that it came out of corrective
mode and as long as it holds 21579.20(figure may change) and sustain on
the closing basis then the chances of moving up will be alive. But break below 21631.97
----21583.05----21346.82 & 21127.18(figure may change) will push
it into very short, deep short, medium and long term 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, therefore for the time being
sell on the rise strategy can be adopted till it gives visible sign of
correction completion.
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 to 21150 or lower in coming days,
which is concerning. But please note that it is out of corrective mode, it has
moved above all its short term moving averages and price action was also
positive today, so if these parameters remain good it could still continue the
up move, but if these parameters turn weak then the technical indicators
weakness can play havoc and can drag it down sharply.
I once again reiterate that till it holds 21579.20
(figure may change) on the closing basis pullback move may be on, else it
may get into correction mode again, moving down its important support points
could be at 21579.20---21500.35----21406---21337.75---21304---21179---21148---20976.80----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 21500.35
may trigger fall and sustained break 20976.80 & 20769.50 may
accelerate the fall.
Similarly moving up it may face strong
resistance at 21579.20---21593---21628---21668----21707----21727.75---21731.40---21756---21768---21801.45---21834.35---21906--21974(figure may change) and it can correct at any of these
points and then may resume the up move again or it may exhaust the up move at
any of these points also. But please note that if it moves above 21768 and
sustain on the closing basis then it could retest its all-time high of 21834.35
or may go beyond it also.
IMPORTANT NOTE: -- IT STAGED A BOUNCE
BACK TODAY AND GOT OUT OF CORRECTIVE MODE ALSO BUT STILL BELOW IT’S CRITICAL
POINTS OF 21727.75---21731.40 &21801.45, SO DANGER OF GOING DOWN IS STILL
THERE TILL IT MOVES ABOVE THE CRITICAL POINTS AND SUSTAIN.
TRADING TIPS:--
1. For safe traders long trade can be tried if it
moves above 21686 and maintain for some time with a stop loss of 21620
or can buy on decline near or within the range of 21535---21500 with a
stop loss of 21450. But aggressive traders can also try long
trade on sharp decline near or within the range of 21100---21000 with a
stop loss of 20930.
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
also be attempted on reasonable rise or on price breakdown for intraday
corrective gains but with extreme caution and alert. Short trade can be tried
on the rise near or within the range of 21750—21780 with a stop loss of 21840
or sell below 21500 with a stop loss of 21585. 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
