CNX-NIFTY
Open-22290--High—22297.50—Low—22186.10--Close-22212.70
on 23.2.2024.
Support: 22126.80/ 22124.15/22079.67/21926.76/21834.35/21813.05/21801.45/ 21763.95/21750.25/21731.40/21727.75/ 21593/21500.35/ 21448.65/21285.55/ 21137.20/20976.80/20769.50/20291.55/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.
Resistance: 22249.40/22252.50/22297.50/22371/22453/22514/22590/22618/22782/22864/23082/23111/23124/23587.
(Bold
and underlined figures are most important)
It opened on a positive
note and hit a new all time high of 22297.50 and had both side moves
during the day and finally ended the day with a meager loss of 4.75 points. It
is needless to mention here that it has been exhibiting volatility for a long
time now and having a see-saw movement quite often. Therefore I am constantly
reminding that the volatility is a
concern and it is not a good sign for a steady market and may eventually
drag it down sharply in coming days/weeks & months. It is important to
mention here that the gap filling threat for earlier gap on the daily &
weekly chart has faded out but please note that eventually it will fill the gap
someday(weekly gap of 20291.55 is yet to be filled), which please note.
It is above the Inverse Head & shoulder pattern(bullish pattern)
neckline which is placed at 22126.80 and if it sustains above it on the closing
basis then the maximum upside target could be 23117 with in between resistance
points at 23376---23457---23623---23787---22870.
The chart setup is good now and if it manages
to hold the recent important & key points of 22126.80(neckline)
----22116.47(short correction threshold point) & 22023.67(deep short
correction threshold point) on the closing
basis then it is likely to continue the move up. Moving up from
here its target or resistance points could be at 22252.50---22297.50----23376---23457---23623---23787---22870.
Similarly moving down the other support points
could be at 22126.80---22124.15----22116.47---22023.67---22007.48---21969---21914-----21881---21823---21801.45---21748---21731.40----21727.75----21711----21692----21683---21593---21500----21448.65---21370.12----21285.55----21137.20(figures
may change), sustained break below 22126.80 could be
highly concerning and sustained break below the range of 22082.04 & 21989.29
will push it into short & deep short
term correction mode for its very recent rise, sustained break below the range
of 21969---21881 may trigger fresh fall and then break below each point will
weaken it further and sustained break below 21137.20 may accelerate the
fall.
It is important to mention here that four out
of five important technical indicators are positive and one most important indicator
is negative on the daily chart giving mixed signals and as of now indicates
that it may swing either way and may finally head down in the coming days.
Furthermore one most important indicator on the weekly & monthly chart is
also negative pointing that it could head down in coming weeks/months. But
please note that the other important parameters such as moving average
placement and price action has been good, therefore if these parameter remains
good and it holds the recent key points as mentioned above then the up move
will continue and last but not the least in worst case scenario as long as it
holds 21671(figure may change) on the closing basis chances of up
move will be alive.
TRADING TIPS:--
1. Long trade can be tried on decline near or within
the range of 22126---22116 with a stop loss of 22000 or if it moves
above 22240 and maintain for some time with a stop loss of 22180.
2. It is in the long term uptrend therefore short
trade in general could be a highly risky affair; however, even then short trade
can 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 22300--- 22325 with a stop loss
of 22400 or sell below 22000 with a stop loss of 22130. 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
